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Why Would Anyone Hand You Their Property? · The Property Unleashed Podcast

• 0:00
  Speaker 1: Why would a landlord agree to do a rent-to-rent with you?
• 0:02
  Speaker 1: Let's work on that in this episode now.
• 0:05
  Speaker 1: Okay, so welcome to this episode.
• 0:19
  Speaker 1: I'm Mark Fitzgerald and it's great to have you joining me here.
• 0:22
  Speaker 1: Why would a landlord do a deal with you?
• 0:25
  Speaker 1: Well, there's some very, very good reasons why a landlord right here right now need our help and will do good deals with us.
• 0:34
  Speaker 1: Now, whether you're looking at using the rent-to-rent strategy to acquire properties for HMOs, houses of multiple occupation or serviced accommodation, airbnb, holiday let's call it what you will short-term rentals, which is the right term for those, these properties, these landlords are in assistance.
• 0:53
  Speaker 1: They will have a pain point, they will have a problem.
• 0:56
  Speaker 1: So, if you're reaching out to landlords maybe you're mailing them, maybe you're running adverts, maybe you're networking all great ways to find leads and, of course, talking to letting agents is another great way to do this as well.
• 1:10
  Speaker 1: What a rent to rent is is where a landlord has a property they want to rent out.
• 1:14
  Speaker 1: Normally it's empty, but it can have tenants in it as well.
• 1:17
  Speaker 1: I've taken on lots of properties with tenants.
• 1:19
  Speaker 1: You agree a month on month fee to pay, a rental fee to pay, which will be guaranteed no matter whether you've got voids or not, you take on the property basically as if it's your own.
• 1:31
  Speaker 1: So you'll pay all the bills, cancel tax and everything, and you'll pay this fee to the landlord.
• 1:35
  Speaker 1: The landlord then doesn't have this headache.
• 1:38
  Speaker 1: So, realistically, when you're talking to a landlord or an agent about this, you have to sell what's in it for them.
• 1:45
  Speaker 1: Forget about introducing yourself, telling them all about you or anything.
• 1:49
  Speaker 1: It's really what are the pain points of this, and I'm going to cover those in this episode and how you can put those across to any agents or landlords to help you.
• 1:58
  Speaker 1: Now, some of the problems that landlords could be having is they're self-managing and they're fed up with it.
• 2:04
  Speaker 1: There's a lot of tired landlords now as well, so we need to make sure that we know what we're doing.
• 2:09
  Speaker 1: So if you're not 100% sure and you've never done any formal training when it actually comes to using the rent-to-rent strategy, click on the link below.
• 2:18
  Speaker 1: I've got some rent-to-rent training that'll give you the blueprint to actually get the results you want.
• 2:23
  Speaker 1: It'll only cost you one pound.
• 2:26
  Speaker 1: So if you're interested in learning more about rent to rent, grab a hold of that.
• 2:29
  Speaker 1: Get in there and start working your way through those modules so that you understand this, because the one thing I do see as being a rent to rent operator myself.
• 2:39
  Speaker 1: It replaced my day job.
• 2:41
  Speaker 1: It's been two different property businesses that I've built up in HMOs and serviced accommodation.
• 2:47
  Speaker 1: Obviously, we're helping other people to do the same now, but the results can be amazing.
• 2:52
  Speaker 1: And even just a couple of days ago in our community Education to Action, one of our members there has just done his first serviced accommodation rent to rent deals and now he's looking at his next deal and we're actually on our live training sessions that you get there helping him to stack the numbers so that he understands what a good deal is.
• 3:11
  Speaker 1: But he had been struggling for a long time we're talking years but now all of a sudden he started to get his first deal.
• 3:18
  Speaker 1: He's got the momentum and he's starting to get out there, which is always great to see.
• 3:22
  Speaker 1: But the benefits for your landlords starting to get out there which is always great to see but the benefits for your landlords, of course, are generating cash flow for them on a month-on-month basis.
• 3:33
  Speaker 1: That is guaranteed.
• 3:33
  Speaker 1: So if you're going to do a rent-to-rent deal and it's going to be over five years you really want to show them the whole amount that they are going to be making over those five years.
• 3:40
  Speaker 1: Now that could be 70, 80, 90,000 pounds that you're going to pay them, because maybe you're going to pay them a grand, a couple of grand a month.
• 3:48
  Speaker 1: If they can see that and they know that that's guaranteed, that is a big, big plus point for them.
• 3:53
  Speaker 1: You've got flexibility that you haven't got to find a big deposit and try and buy properties and have big, high solicitor fees and things like that as well, but you really want to be making sure that they're comfortable with this.
• 4:07
  Speaker 1: So when you're going in and talking to people or what I like to say is we like to look after properties as if they're our own and we basically manage and run your property exactly the same as a letting agent does.
• 4:20
  Speaker 1: But we've got some pluses, okay, and one of the major pluses for us is you have no voids and you have no minor maintenance issues or problems, because we take care of all of that, because the clients that we put into the property now, whether that's tenants or whether that's holiday makers you can still say clients because of the clients we put in there we have to be very proactive in looking after them, because that's how we make our money.
• 4:46
  Speaker 1: And of course, it's great for you because A you know your property's looked after and kept to the highest standard.
• 4:51
  Speaker 1: B you also know that the value of your property isn't going to dip.
• 4:55
  Speaker 1: If anything, your capital growth and all properties go up over time is going to be better because you're not going to have to keep going back in there after 12 months and start refurbishing it and painting it.
• 5:06
  Speaker 1: Why?
• 5:07
  Speaker 1: Because we stay on top of all of that and see you've got a guaranteed rent each and every month with no voids, and we look after everything for you.
• 5:17
  Speaker 1: What is not to like Now when you're explaining that to somebody if you do that in that manner and they still don't get it or don't understand it or it's not right for them.
• 5:27
  Speaker 1: It's not right for them.
• 5:28
  Speaker 1: This isn't right for everybody.
• 5:30
  Speaker 1: And just because we think it's an absolute no brainer, not everybody will.
• 5:34
  Speaker 1: Some people will be afraid of it because it sounds too good to be true.
• 5:38
  Speaker 1: So it really is about talking to people.
• 5:40
  Speaker 1: If they say I'm not sure, what are you not sure about?
• 5:44
  Speaker 1: Ask those questions.
• 5:45
  Speaker 1: Don't be afraid to say what are you not sure about Now?
• 5:48
  Speaker 1: A lot of the time when you come to do a rent to rent deal, it will all bore down to the monthly fee.
• 5:52
  Speaker 1: Don't get too caught up in worrying about that.
• 5:56
  Speaker 1: The numbers are the numbers.
• 5:57
  Speaker 1: Now, if you're trying to stack rent-to-rent deals and you don't have a or you're not 100% sure how to do so, click on the link below Education Action, go to the free tools and resources and download my rent-to-rent deal analyzer so that you can stack deals for HMOs or serviced accommodation.
• 6:17
  Speaker 1: It's there to help you to make sure that we get those numbers right.
• 6:21
  Speaker 1: But once you've got that stacked, once the numbers work, that is what you've got to put to that landlord, whether or not it's exactly the same as what they're getting now or maybe it's a bit less.
• 6:32
  Speaker 1: If it's more, you're absolutely laughing.
• 6:34
  Speaker 1: You're going to have that deal done.
• 6:36
  Speaker 1: But sometimes landlords like to get greedy.
• 6:38
  Speaker 1: They think they're earning X amount even when they're not.
• 6:42
  Speaker 1: So it's about making sure that they understand exactly what they're earning now, and that is going through your negotiations.
• 6:49
  Speaker 1: I have a whole blueprint in the Rent to Rent Business Builder and Accelerator that explains how to do that, how to take a landlord whose expectations are up here and bring them down to actually and it's fair what they're actually making.
• 7:03
  Speaker 1: Get them to see what they are making or not, month on month, rather than them just thinking I need the full rent.
• 7:10
  Speaker 1: Because you can imagine if they've got an HMO and they say the rent I get paid is £3000 pounds a month.
• 7:17
  Speaker 1: It's basically then not accounting for bills for maintenance and all of that.
• 7:22
  Speaker 1: They just see the top price.
• 7:24
  Speaker 1: We have to take the bills because we're going to be paying those into account.
• 7:26
  Speaker 1: We have to take the maintenance into account.
• 7:28
  Speaker 1: We need to get them from that 3,000 pounds.
• 7:31
  Speaker 1: It might get them all the way down to about 1,200 quid and that might not be what they're making because they've got voids and they will have a problem.
• 7:38
  Speaker 1: So it's about finding out that problem.
• 7:40
  Speaker 1: It's about seeing if we can solve that problem and if we can, we move on.
• 7:44
  Speaker 1: Don't get too caught up.
• 7:45
  Speaker 1: I put an offer in and I said no, okay.
• 7:48
  Speaker 1: Next, there are so many opportunities out there right here, right now, that you shouldn't get hung up on one deal.
• 7:55
  Speaker 1: So keep moving yourself forward time and time again and it will start to reap rewards.
• 8:01
  Speaker 1: Now, some of the worries that I hear people who are getting into rent-to-rent are think and feel, and I was the same.
• 8:09
  Speaker 1: I thought these and I used to think to myself you know why would a landlord agree to this?
• 8:14
  Speaker 1: Well, that's why what I've said before is we have to explain it to them.
• 8:18
  Speaker 1: They're going to make more money, they're going to have their property looked after better than if tenants are in there and, of course, they have no hassle whatsoever.
• 8:26
  Speaker 1: And sometimes that can come at a bit of a price.
• 8:29
  Speaker 1: So when you are negotiating with your landlords, if your rent seems to be a little bit less, you just need to explain those things.
• 8:36
  Speaker 1: So don't just send your offers over via a message or an email.
• 8:40
  Speaker 1: Ring them up and explain your offers to them as well.
• 8:44
  Speaker 1: We have full templates for all of this to make it a no brainer, which is why people get more deals than more often than not, than trying to do it on their own.
• 8:53
  Speaker 1: But also people have worries and fears like what do I do?
• 8:57
  Speaker 1: I have no money.
• 8:58
  Speaker 1: So how do I pay the guaranteed rent?
• 9:00
  Speaker 1: What happens if the owner says well, how can you guarantee the rent?
• 9:03
  Speaker 1: The fact of the matter is, you've got to be doing good deals Now.
• 9:08
  Speaker 1: Do you need thousands and thousands of pounds to start a rent, to rent business?
• 9:12
  Speaker 1: No, you don't.
• 9:14
  Speaker 1: I would say, though, that you do need to be able to get hold of a little bit of money.
• 9:18
  Speaker 1: So if you're looking at a rent that's 1200 pounds a month, you really if you can get hold of two months worth of rent whilst you sort the property out and get it all set up and everything, and, of course, you can ask for a rent-free period.
• 9:31
  Speaker 1: If you are putting money, or you are spending a bit of money or you are sprucing up somebody's property over the first month, you could say can I have the first month rent-free while we paint the property and raise the value for you and make it all nice?
• 9:42
  Speaker 1: There's loads of different ways you can do this, but what I would say is you will need to have some sort of capital to be able to dip into.
• 9:50
  Speaker 1: It could be a credit card, it could be somebody that could just loan you a thousand, a couple of thousand, just to make sure that you can sleep well at night.
• 9:57
  Speaker 1: Now I have done rent to rent deals where I haven't had the monthly rent, but I pay the monthly rent at the end of the month, so it gave me a month to build up and get that money coming in.
• 10:06
  Speaker 1: I didn't make any money that month but I had enough to pay it.
• 10:10
  Speaker 1: I'm not saying you should do that.
• 10:11
  Speaker 1: Never get into a deal where you think you're going to be in problems but you don't need that much money.
• 10:16
  Speaker 1: And if you structure this in the right way which if you need help with that, we can help you with that education to action you will do the best deals and you will start to grow a successful rent to rent business, which is predominantly what we want to see to grow a successful rent-to-rent business, which is predominantly what we want to see.
• 10:33
  Speaker 1: I've done a lot of rent-to-rent deals now.
• 10:34
  Speaker 1: I've done great deals, I've done okay deals and I have done a handful of bad deals.
• 10:39
  Speaker 1: So I know what you're looking for.
• 10:41
  Speaker 1: I know what to do, what not to do, when it's a good deal, when it's a bad deal, what you should say, what you shouldn't say and also when you should just walk away.
• 10:50
  Speaker 1: Now, the one thing is about rent to rent is you have got contracts.
• 10:53
  Speaker 1: You are legally obliged to do everything in those contracts, but we have break clauses there as well.
• 11:00
  Speaker 1: So if you are struggling with a property, you can just issue that break clause.
• 11:04
  Speaker 1: Some people say to me, in a fear or worry that they have, is I work full time and how can I do this?
• 11:09
  Speaker 1: Well, once you've got the property and set it up, it's not a 24-7 job.
• 11:17
  Speaker 1: You will have work to do, but you can do those in the evenings, you can do viewings at the weekends and everything you can make time to run a successful rent-to-rent business.
• 11:22
  Speaker 1: There's a lot of people that are doing this alongside full-time jobs, so they've still got the money coming in, but of course, they can also start to build that up, and when their rent-to-rent business makes more money than their current job, they'll jack the job, they'll sack the boss, as we like to say.
• 11:36
  Speaker 1: I have no experience in property.
• 11:40
  Speaker 1: That is why you need to learn exactly what to do.
• 11:43
  Speaker 1: Surround yourself with like-minded people and everything.
• 11:46
  Speaker 1: What happens if I can't fill the properties?
• 11:48
  Speaker 1: Well, that goes back to your due diligence.
• 11:50
  Speaker 1: So it's making sure that you know how to do your due diligence.
• 11:56
  Speaker 1: You know that your property's in a right area.
• 11:57
  Speaker 1: It's going to attract the right people to that property.
• 11:58
  Speaker 1: And now, if that's tenants, you want to make sure that the property's in an area for the tenant type that you're looking to serve.
• 12:04
  Speaker 1: If it's holiday lets, service accommodation, airbnb.
• 12:07
  Speaker 1: You want to make sure that, again, your niche market are going to be able to stay in that property.
• 12:13
  Speaker 1: It's going to be in an area that they want to go into.
• 12:17
  Speaker 1: If it's not, there's no point in doing those deals.
• 12:19
  Speaker 1: And, of course, you guarantee the rent.
• 12:22
  Speaker 1: You look after the property, as I've said already, and you take the hassle away.
• 12:27
  Speaker 1: So make sure that you're always selling those points.
• 12:31
  Speaker 1: I hope this episode has helped you.
• 12:33
  Speaker 1: If you need any help with your property investing whether it's rent to rent deal, sourcing, serviced accommodation, hmos, refurbishments maybe you're struggling to do those check out, education to Action.
• 12:44
  Speaker 1: We have a lot of free guides, a lot of free tools and resources and, of course, you can come and dip into our community or jump into our community.
• 12:50
  Speaker 1: No-transcript.