What Is Rent-To-Rent? (HMO & SA)
How much do you know about Rent-to-Rent?
Discover what is Rent-to-Rent, how my approach is different and the difference between HMO and Serviced Accommodation...
Today I am going to be breaking down exactly what is Rent-to-Rent. Not only will I break down the Rent-to-Rent strategy, but I will also explain my approach, which is different from many others out there. If you are brand new to Rent-to-Rent, then this episode is for you, or if you are experienced, this may give you a new perspective on the property investment model.
What is Rent-to-Rent?
The Rent-to-Rent model is a way of controlling property without owning it while still enjoying the cash flow. I want you to ask yourself an important question. What do you want to get out of property investment? Do you want to own the asset? Do you want to be on the deed on the land registry? Or do you want the cash flow and the capital appreciation that it brings? Because if that’s the case, then Rent-to-Rent is a serious consideration. Throughout my research, I have not discovered another property investment strategy that can bring the same returns.
Most of my deals require an investment of around £5,000, and within six months, all of my money is out. After this, my return is infinite. For my purchases, generally speaking, I will need to wait a little longer to break even. Even if I smash the deal out of the park, I would still need to wait a year or so.
With Rent-to-Rent, you don’t benefit from the capital appreciation because you don’t own it, but you benefit from the cash flow. If you are smart and re-invest, that will take you to the next level.
Listen to the rest of the episode to learn in more detail about Rent-to-Rent, why my approach is different and the difference between HMO and Serviced Accommodation.
Listen to my new podcast and subscribe! Available on iTunes, Google, Spotify and others or click “play” on the player below!
Podcast Transcript↓
[00:00:56] Simon here and welcome to another episode of the podcast. And today we're going to be breaking down exactly what is rent to rent. And it's a little bit of a curve ball because my style or my idea of rent to rent is different to many others out there. And I want to share that with you today. So if you're brand new to rent, to rent this episode for you.
[00:01:23] Or maybe you're engaging in rent to rent. And I might just slightly shift your mindset on the concept of rent to rent. So. Whoever you are, stay tuned, massive value as always. And if you're brand new to the podcast, every single Monday are released new material on all things, property, creative cashflow, and how to be financially independent today, not in 25 years.
[00:01:52] And the concept behind that is why wait until you retire to start enjoying your. Independence and whether you like it or not, whether you want to admit it or not. One of the key factors in freedom is money. You know, some people they're like, ah, do you know what? It's not all about money? You know, I'm good.
[00:02:20] I'm okay with what I've got. But if you really really ask yourself and don't focus on the money, but focus on what the money would bring. Not many of you, not many of anybody is actually at a place where if they don't earn no money for the next 10 years, they're good. And that's financial independence and.
[00:02:44] That's me as well, by the way. Yeah. I mean, I've set up some amazing passive income, but I'm still striving for more and more and more and more. And that's why I started this podcast because I wanted to document my journey. I'm not the finished article I learn every single day. And I just want to share that experience with you.
[00:03:03] So if you're brand new, you know what to do, subscribe to the podcast. Also be sure to head over to Simon Smith, online.com. We've got some amazing resources, free downloads to get you started. We've got the YouTube channel now, Simon Smith online. And of course, if you want to get in touch, DM me on Instagram at Simon Smith online.
[00:03:23] So let's get into it. What is rent to rent? Rent to rent is a way of controlling property without owning it while still enjoying the cashflow.
[00:03:39] And I would urge you to ask yourself a question right now, if you want to be involved in property, what do you want out of it? Do you want to own it? Do you want to be on the deed on land registry or do you just want the cashflow and the capital appreciation that it brings? Because if that's the case, then rent to rent.
[00:04:01] Is a serious consideration because I've not seen a property strategy, which can bring the same returns. Most of my deals, I invest around 5k in and within six months, all my money's out and my return is infinite. Okay. The purchases I'm doing generally speaking, I'm having to wait longer. Even if I smashed the data of the park, I'm still waiting a year or so.
[00:04:28] And talking of that, I actually did a YouTube video this week about how I managed to get a free 140,000 pound HMO for free using the B AR AR AR AR AR AR AR AR strategy. So if you've not checked that out, go onto YouTube. Simon Smith online is a wicked video. And it just lets you know, what is possible.
[00:04:53] But even through that took me a year to get my money back rent around and get my money back quick. And then I'm recycling it quickly. But you know, you don't benefit from the capital appreciation on because you don't own it, but you benefit from the cashflow and it's what you do with the cashflow that will take you to the next level.
[00:05:14] You can use it as the ultimate form of leverage rent to rent is the ultimate leverage you use over people's property to bring you cash cashflow, and then you use other people's money that cashflow to reinvest in assets to provide financial freedom and independence for you and your family. Great love in this vibe.
[00:05:37] So why is my style of rent to rent different? One of the main reasons. There's quite a few reasons, but one of the main reasons is that I don't look at rent to rent in terms of just HMO or rent to serviced accommodation, rent to rent for me is a substitute for buy to let, instead of buying the property and renting it out, you don't buy the property and then you rent it out.
[00:06:05] And once you've controlled the property, The cashflow strategy, you choose their fourth HMO serviced accommodation, single, single furnish, lair, whatever you want to do to add the value. Yep. That is that's separate. That's the next, that's the cashflow. That's the creative cashflow, but rent to rent is getting hold of that property.
[00:06:32] And no matter what your cashflow, where is the technique to controlling the property is largely. The same and I've done what 40 odd episodes of the podcast, 10 plus videos on the YouTube hundreds of videos and posts on my creative cashflow, Facebook group, sharing my journey and how I I've taken 3000 pounds and turned it into over 10.
[00:06:59] Most months over 15,000 pounds worth of monthly income. And to be honest with you, there's been months where we've hit 20 K because the occupancy rates and the service accommodation income has been so good. And one of my goals is to be consistently hitting that 20 K 20 K 25 K. And then my next goal is to start building up my own property cashflow.
[00:07:27] Using the cashflow from the rent to rent. Once my own portfolio equals my rent to rent portfolio, you will see me in the Maldives or Barbados, relaxing and taking it easy until then. I'm going hard. I'm pushing every single day to get more and more deals. So that's it from me. If you want to know what rent to rent is, if you want more information on it.
[00:07:53] Then drop me a line, hit me up, go through the podcast, go through to YouTube. If you want to know more detail, but in essence, rent to rent is a substitute for buy to let don't buy the property and still cashflow it. No, you won't get the capital appreciation, but you'll get the cashflow. And that's why my ethos is get creative today.
[00:08:16] Not in 25 years hurt. You've enjoyed it. Speak to you soon. Thanks.
[00:08:33] Thanks for listening for more information, check out Simon Smith, online.com. See you next time.