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Making Profits from Properties You Don't Own With Rent 2 Rent · The Property Unleashed Podcast

• 0:00
  Speaker 1: five advantages when doing the rent-to-rent strategy.
• 0:03
  Speaker 1: Hello, my name's Mark Fitzgerald.
• 0:15
  Speaker 1: Great to have you joining me here today.
• 0:16
  Speaker 1: So there are five real major benefits when using the rent-to-rent strategy.
• 0:22
  Speaker 1: When property investing Now whether you're looking at just starting out or whether you're a seasoned investor looking for more cash flow you want to grab hold of some properties, look after some properties for other people and you want to get higher cash flow for those properties, get great returns on the deals that you're doing.
• 0:40
  Speaker 1: There are five main reasons why rent-to-rent works so well.
• 0:45
  Speaker 1: A lot of people think rent-to-rent is great just for startup, just for getting a leg into the property ladder, and it's what I used to actually get into property.
• 0:54
  Speaker 1: I didn't have big, big pots of money I wish I did which would make it so much easier to get into the property game.
• 1:01
  Speaker 1: I knew myself that I could put a good product together.
• 1:05
  Speaker 1: I could look after and manage and maintain other landlords' properties to a very high standard, giving them a good return on their money ie, a good guaranteed rent and, of course, also then making sure that I put a good home together for my tenants or, if you're doing service accommodation for my clients.
• 1:24
  Speaker 1: I started out using the HMO strategy right here, right now.
• 1:29
  Speaker 1: A lot of people do think that the HMO market is saturated and that service accommodation is the way to go.
• 1:35
  Speaker 1: Now if you're interested in doing holiday lets and service accommodation, it is a great strategy.
• 1:40
  Speaker 1: To do Rent-to-rent essay, or rent-to-essay as it's likely to be called around you is a great strategy.
• 1:48
  Speaker 1: But I like the HMO strategy when I was starting out for a few reasons.
• 1:52
  Speaker 1: One was because I could get hold of existing HMOs.
• 1:55
  Speaker 1: I didn't have to convert houses with that expense and get a license and older compliances and everything.
• 2:01
  Speaker 1: What I could do is look for already licensed existing HMOs, market out to those landlords and then take on good properties that are in a good condition and do a really good job for the landlords and, of course, making it a win-win for everybody.
• 2:17
  Speaker 1: So rent-to-rent rogues really well and, of course, if you are looking at doing service accommodation, that is a great strategy to be doing as well.
• 2:24
  Speaker 1: Holiday let's, short-term rentals they go by a few different names and of course, airbnb, bookingcom is where you're gonna put your properties onto market and of course, you will maintain those to a really good standard as well.
• 2:36
  Speaker 1: So it's a great way to get involved.
• 2:39
  Speaker 1: But, realistically, the five strong points that you don't wanna be overlooking when doing rent to rent are as follows.
• 2:47
  Speaker 1: So, first and foremost we've already touched on it at the beginning of this video as well is low capital startup.
• 2:54
  Speaker 1: So at the end of the day, you don't need bags and bags of cash.
• 2:57
  Speaker 1: I speak to some people and they say to me Mark, I wanna get into rent to rent, I'm gonna come and join your training because I wanna follow that blueprint.
• 3:05
  Speaker 1: I want that support, I want that coaching, but I need to save up about five to 10,000 pounds to start my business.
• 3:12
  Speaker 1: That is good and I would never say to anybody well, no, no, no, don't do that.
• 3:17
  Speaker 1: Because if you can do that, do that.
• 3:19
  Speaker 1: Obviously, the more money that you can have behind you, the easier or the better you can make it for yourself.
• 3:23
  Speaker 1: But likewise, you don't need that.
• 3:26
  Speaker 1: My first deal cost me 250 pounds after the contracts and everything.
• 3:30
  Speaker 1: And if you do my training anyway, you get all the contracts and scripts and stuff like that.
• 3:34
  Speaker 1: But that's a whole different debate.
• 3:36
  Speaker 1: After contracts and things, the actual setup of the property, because it was a nice property, it'd been recently refurbished.
• 3:41
  Speaker 1: You don't have to just take on poor properties.
• 3:44
  Speaker 1: You really don't wanna be putting lots and lots of your own money into somebody else's property.
• 3:49
  Speaker 1: You wanna be making sure that they make it to a really good standard.
• 3:53
  Speaker 1: You'll maintain it to that standard.
• 3:55
  Speaker 1: Then You'll cover minor maintenance, you'll pay them a guaranteed rent and you'll look after the properties for them, as I said before, making it a win-win.
• 4:03
  Speaker 1: So you shouldn't be looking at having to spend thousands and thousands of pounds on somebody else's property.
• 4:09
  Speaker 1: Now there are cases where maybe the furniture in there, the beds, the wardrobes are all a bit run down, maybe it's an old student property and the furniture doesn't quite match, it doesn't quite hit the boxes of the clientele or customers or tenants I like to call them customers or tenants that you wanna put in the property.
• 4:28
  Speaker 1: In which case then of course you might have to refurbish it.
• 4:32
  Speaker 1: The landlord won't do it and it's a good deal.
• 4:34
  Speaker 1: That's gonna cash flow.
• 4:35
  Speaker 1: Well, you can look to refurbish it, but you don't need to spend like two, three, four, five thousand pounds in one go.
• 4:42
  Speaker 1: Now, when you could get yourself a credit card, you could get a loan to do so.
• 4:46
  Speaker 1: I wouldn't recommend that, but you can do so.
• 4:48
  Speaker 1: If it's gonna cash flow, you five, six, seven, a hundred pounds a month.
• 4:52
  Speaker 1: Of course you can pay yourself a bit of money out of the profit and of course you can pay off the loan that you've got as well.
• 4:58
  Speaker 1: There are also companies out there If you reach out to me I can tell you who they are that will loan the least of the furniture, basically off you.
• 5:07
  Speaker 1: You go and buy the furniture that you wanna have in there.
• 5:09
  Speaker 1: They'll give you the money back for that and you pay them a lease fee each and every month as well.
• 5:14
  Speaker 1: So there's lots of different ways that you can set properties up.
• 5:16
  Speaker 1: You don't necessarily have to have a big bag of cash.
• 5:19
  Speaker 1: And what I do say to people is when they wanna save this money and they're saying, well, I'll give it six months, I'll save all this money and then I'll get started.
• 5:26
  Speaker 1: I just think, get started.
• 5:27
  Speaker 1: You can still save the money while you're looking to get a deal.
• 5:31
  Speaker 1: But in all of that time, if you're not even out there, you're not even looking for deals, then you're missing all the opportunities that potentially you could be taking on, and somebody else is taking those opportunities on.
• 5:41
  Speaker 1: So get started.
• 5:43
  Speaker 1: First and foremost, the low cost.
• 5:45
  Speaker 1: You might think you need more money than you have.
• 5:46
  Speaker 1: Just start getting started and then see what you find.
• 5:50
  Speaker 1: As I say, my first deal cost me 250 pounds and that was just for some room dressing and the house itself was in excellent order.
• 5:57
  Speaker 1: The second property I took on we needed to do a little bit of painting on there, so some of the rooms just needed a little bit of an upkeep and I think that cost me about 400, 500 pounds.
• 6:07
  Speaker 1: So I got two properties that were cash for me over A thousand pounds a month.
• 6:11
  Speaker 1: Okay, between them profit, and they both cost me about I don't know 750, 800 pounds.
• 6:18
  Speaker 1: So let's say, let's say, a thousand pounds.
• 6:21
  Speaker 1: Two properties month on month cost me a thousand pounds to set up and then I made that back in my first month.
• 6:27
  Speaker 1: Okay, so I could easily borrow that money from somewhere and then pay it back within a month or two.
• 6:33
  Speaker 1: So you don't need to overthink things.
• 6:35
  Speaker 1: Sometimes we get like well, what happens if we can't fill the properties?
• 6:37
  Speaker 1: Well, that's why, like on the Rent-to-Rent Business Builder, we show you how to find properties in high demand areas.
• 6:45
  Speaker 1: Okay, and also, if you put a good product together.
• 6:48
  Speaker 1: You may be thinking my area is saturated with HMOs, and maybe it is.
• 6:53
  Speaker 1: My area is okay.
• 6:54
  Speaker 1: Every area I operate in has hundreds of HMOs.
• 6:58
  Speaker 1: It's saturated, but there's a lot of rubbish out there.
• 7:01
  Speaker 1: Now there are some nice ones.
• 7:02
  Speaker 1: That's great, but we want to make sure we're up there with the nice ones.
• 7:06
  Speaker 1: Ok, and it doesn't cost you the earth to grab a paintbrush to paint a few walls, put a bit of dressing in there and give it an uplift so that when somebody walks in it looks fresh, it looks like somewhere that they want to live.
• 7:17
  Speaker 1: You've got to remember now people don't necessarily rent your rooms because of the features in your room.
• 7:24
  Speaker 1: They rent your rooms because of the lifestyle your room will give them.
• 7:29
  Speaker 1: So if that is coming in with features and things like tellies and stuff like that, then great.
• 7:33
  Speaker 1: But it's not always like that.
• 7:35
  Speaker 1: If it's got a nice color scheme, it looks fashionable.
• 7:37
  Speaker 1: It's somewhere where people can stand in their own room, take selfies and be proud of the room and the area and the property that they're in.
• 7:44
  Speaker 1: That is a great start and that actually is worth more sometimes than tellies on the wall and all the trinkets that you can add there, which actually cost a bit of money.
• 7:53
  Speaker 1: So you've got to make sure that your design is good and that can be done at a very, very cost effective manner.
• 7:59
  Speaker 1: Ok, and that's what we help people with as well.
• 8:02
  Speaker 1: I'm rubbish at all of that personally myself, so I leave that to other people who are better skilled with designs and things.
• 8:08
  Speaker 1: And, of course, you can go on apps like Pinterest, obviously, instagram and things.
• 8:13
  Speaker 1: You can just look at what other people have done.
• 8:15
  Speaker 1: Normally, if you actually reach out to the people that have done it and just say, I love that color, what is it called?
• 8:20
  Speaker 1: People will openly tell you what they're called.
• 8:23
  Speaker 1: So you can get that sort of data.
• 8:24
  Speaker 1: So it can be a very, very low cost startup.
• 8:28
  Speaker 1: You think about getting into property investing.
• 8:30
  Speaker 1: Property investing you do normally need big chunks of money.
• 8:33
  Speaker 1: You need deposits, don't you?
• 8:34
  Speaker 1: You're going to buy properties to make money on properties.
• 8:37
  Speaker 1: You need big deposits.
• 8:39
  Speaker 1: You need big investments to get started.
• 8:41
  Speaker 1: Rent to rent you don't need that.
• 8:42
  Speaker 1: All you need is a willing landlord who wants to work with you, or an agent at the end of the day as well, of course, a letting agent.
• 8:50
  Speaker 1: You can work with those as well, but you just need somebody who's going to appreciate the fact that when you take that property on, you're going to look at it, look after it and maintain it to a very, very high standard, in which case their asset as you say, their property, their asset is going to be looked after to this high standard, and that is what it's all about.
• 9:08
  Speaker 1: So remember, when you're going out there and you're negotiating and you're talking to agents or landlords, you've got to remember that your business brings a package that can really, really help them and that is worth maybe not quite getting top rent.
• 9:23
  Speaker 1: Obviously they're going to have voids, but sometimes they don't take into account the voids.
• 9:29
  Speaker 1: They don't take into account what they're paying for maybe a letting agent, if this is the landlord, they don't take into account the utilities and things.
• 9:35
  Speaker 1: So we can spell out actually what their costs are and then when we come in and offer them a guaranteed rent, it's very close to normally what they would be getting, okay, minus all of the other fees and everything like that.
• 9:46
  Speaker 1: Because, of course, if a letting agent's looking after the property and they have to go in there and change a light bulb, even they're going to put a surcharge on that.
• 9:53
  Speaker 1: A management fee is going to go on to that.
• 9:55
  Speaker 1: So not only are they going to pay for whoever goes and changes the light bulb and I'm just saying a light bulb, because light bulbs do go.
• 10:01
  Speaker 1: They're going to also put probably 10, 15% on that as well, and the landlords don't always take that into consideration that we will just go in there and change a light bulb without ever charging, that We'll do it out of our own management fees as well.
• 10:14
  Speaker 1: Okay, and when we're starting out, the amount of times you actually have to go and do stuff like that is next to nothing.
• 10:22
  Speaker 1: So it's all right.
• 10:23
  Speaker 1: And, of course, if you've got good tenants as well, you have some light bulbs in a cupboard, like we do.
• 10:27
  Speaker 1: Then they can go and help themselves to them and just let us know when they're going down.
• 10:30
  Speaker 1: Oh, what we do is I have my cleaning team going in there and they open up the cupboard and we have some light bulbs.
• 10:36
  Speaker 1: We have a few other bits and bobs in there as well some rags, some dusters and things.
• 10:39
  Speaker 1: Now, they don't tend to use them.
• 10:41
  Speaker 1: The cleaners use them, but they're all there and when we get down to the last few, we have a little sticker that's on the last few that are at the back, which tells the cleaner just send us a WhatsApp message that goes through to my VAs and then we make sure that we replenish and stock up.
• 10:58
  Speaker 1: So that's a whole different debate.
• 11:00
  Speaker 1: It's low capital, it's a low cost startup strategy.
• 11:04
  Speaker 1: So don't be afraid to get started with a few hundred pounds.
• 11:08
  Speaker 1: Just make sure that you know what you're doing.
• 11:10
  Speaker 1: Now, on that knowing what you're doing, if you need any help with that, visit thepropertyunleashedcom.
• 11:15
  Speaker 1: Go down to the free resources page, click on that and we have some guides in there.
• 11:20
  Speaker 1: We have Rent to Rent Business Builder, hmo Guide.
• 11:23
  Speaker 1: We have a Service to Accommodation Guide.
• 11:25
  Speaker 1: We have a Deal Sourcing Guide.
• 11:26
  Speaker 1: We have a Deal Analyzer so you can stack those deals, because it's very, very important for me to know that you are stacking good deals.
• 11:34
  Speaker 1: And we also have some master classes of how to get started in Rent to Rent, how to get started in Service to Accommodation as well all completely free.
• 11:41
  Speaker 1: On top of that, we do have training as well.
• 11:43
  Speaker 1: We have the Rent to Rent Business Builder, which will show you how to build a Rent to Rent business with HMOs, and we have the ultimate Service to Accommodation Business Builder as well, which shows you Rent to Rent, shows you all the different ways to do Service to Accommodation and is headed up by Graham Linley who's got over 350 Service to Accommodation units.
• 11:59
  Speaker 1: So you know you're in good hands with that.
• 12:01
  Speaker 1: But check out the property on leashcom for those.
• 12:04
  Speaker 1: So at number two, it's reduced risk.
• 12:08
  Speaker 1: Now people do say to me, mark, offering a guaranteed rent, that's really risky.
• 12:12
  Speaker 1: It's not actually because we use proper contracts.
• 12:16
  Speaker 1: If you're with Mickey Mouse people or you just don't know because you don't know what you don't know, as the old saying goes, you might use a contract, you might lock yourself into a three to five year contract, no break clause.
• 12:27
  Speaker 1: You have to have a break clause in your contract.
• 12:30
  Speaker 1: Why?
• 12:30
  Speaker 1: Because this is a business to business.
• 12:33
  Speaker 1: I don't know why I'm doing that, but like business to business agreement.
• 12:36
  Speaker 1: So we shake hands as business people, not as a tenant.
• 12:40
  Speaker 1: We are not a tenant taking on a property and looking after it on the landlord's behalf.
• 12:45
  Speaker 1: We are a management company looking after the property very much like a letting agency, but with better perks because we offer guaranteed rents.
• 12:53
  Speaker 1: We take care of minor maintenance and the landlord knows what they're going to be paid each and every month, okay.
• 12:58
  Speaker 1: So by doing so we haven't had to pay, as I said before, big deposits by a property, only to realize that it's maybe not quite in the right area, that maybe we can't find the tenants that we want to find, and things like that.
• 13:10
  Speaker 1: I have given rent to rent deals back because circumstances and situations have changed.
• 13:16
  Speaker 1: One of my early deals the landlord wanted to sell the property.
• 13:20
  Speaker 1: He needed to sell the property now.
• 13:22
  Speaker 1: We had a contract and I could have been.
• 13:23
  Speaker 1: I could have said, no, we've got a contract here.
• 13:27
  Speaker 1: But because I don't put lots and lots of money into other people's properties, I was quite happy to let him have the break clause.
• 13:33
  Speaker 1: He issued the break clause, we gave the property back and he went on to sell his property.
• 13:38
  Speaker 1: Everybody's happy, he's happy.
• 13:39
  Speaker 1: I went on and got more deals and it was very early on.
• 13:42
  Speaker 1: I had had the property a couple of years anyway.
• 13:44
  Speaker 1: I'd made really good money out of it and I'm not going to hold anybody into a contract if they need to get out of it, because I just don't work like that.
• 13:52
  Speaker 1: That's not the way that I want to trade and do business.
• 13:54
  Speaker 1: You could be different, you can do things any which way you want, but for me, if somebody comes to me, one of my landlords comes to me and I am not owed any money by the property.
• 14:03
  Speaker 1: In fact, it's done well for me.
• 14:04
  Speaker 1: Maybe I'll even look at buying it myself now.
• 14:07
  Speaker 1: This property wasn't particularly in an area that I wanted to own any properties, which is why I didn't want to take it on.
• 14:13
  Speaker 1: Plus, I was already looking at buying a few other properties and I just didn't want to lose those deals, to try and do this deal when it wasn't exactly what I was after.
• 14:21
  Speaker 1: But, as I say, we have break clauses.
• 14:24
  Speaker 1: We can get out of there.
• 14:25
  Speaker 1: We reduce the risk.
• 14:26
  Speaker 1: So if you take a property on and maybe you've ran it for six, seven months and it's just not working out for you, you can issue the break clause.
• 14:32
  Speaker 1: You can continue in that time, of course, to build up your portfolio and get more properties.
• 14:37
  Speaker 1: But it's not emotional.
• 14:38
  Speaker 1: It's just business to business.
• 14:40
  Speaker 1: Always treat it as a business.
• 14:43
  Speaker 1: Don't get emotional with it.
• 14:44
  Speaker 1: And also make sure you've got the right break clauses in any contracts you're doing.
• 14:49
  Speaker 1: People that come and work with us get the contracts that they need proper, up-to-date contracts that we use in our business now, here and now.
• 14:57
  Speaker 1: These are thousands of pounds worth of contracts that are included in our training that you can use.
• 15:01
  Speaker 1: You can take them to a solicitor as well, but you won't have to pay for a whole brand new contract being written up or drawn up, should we say?
• 15:09
  Speaker 1: You can actually just use these.
• 15:10
  Speaker 1: So you have all the tools and resources that you need.
• 15:13
  Speaker 1: And, of course, a lot of people say well, what happens if I get a hold of a property and I can't find the tenants and I can't fill it?
• 15:18
  Speaker 1: Listen, if you do a good job and it looks nice, you will fill it.
• 15:21
  Speaker 1: There's people out there that are absolutely screaming out for good living, for good accommodation in good areas and just want to be somewhere where they can feel safe.
• 15:30
  Speaker 1: And if you can make your properties feel like a bit of a community, make them feel safe, then your tenants will stay longer as well, and that is a great way to look at it.
• 15:38
  Speaker 1: At number three, it's all about cash flow as well.
• 15:41
  Speaker 1: We can get great, great cash flow from very, very little startup money.
• 15:47
  Speaker 1: So again, of course, if you're doing HMOs, you really want to be getting, at a minimum, a hundred pound profit per room.
• 15:54
  Speaker 1: So if you take on a five bed HMO, you want to be making profit wise 500 pounds.
• 16:00
  Speaker 1: Okay, if you've got a six bed, 600 pounds.
• 16:03
  Speaker 1: Now, if you're in London, it's a little bit different.
• 16:06
  Speaker 1: There you really want to be gauging it so that at least one room void because you might have a five bed in London but the rents might be 900 pounds, in which case 500 pounds and you have a void you're actually 400 pounds out of pocket.
• 16:18
  Speaker 1: So you really want to be looking at whatever one room void is.
• 16:22
  Speaker 1: So if it's 900 pounds, you want to be making sure that you stack your deals so that you can afford to have one void and the property will wash its face.
• 16:30
  Speaker 1: It might not make you any money, but it won't cost you any money.
• 16:33
  Speaker 1: So it's very important that we look at that.
• 16:36
  Speaker 1: You might say well, mark, what?
• 16:37
  Speaker 1: What happens if I have two voids?
• 16:38
  Speaker 1: Well, you need to get your finger out and get your properties filled, and that's the other thing that we show and go through with people as well is show you how to fill your properties.
• 16:46
  Speaker 1: So, basically, within a week or two weeks, you can fill those rooms.
• 16:49
  Speaker 1: Okay.
• 16:50
  Speaker 1: So as long as you're proactive with your marketing and getting out there on spare room, open rent and all of the other ones, you will fill your rooms, as long as they're in a decent area and they look the part.
• 17:02
  Speaker 1: And that's another thing is we always make sure that our rooms look like the pictures.
• 17:07
  Speaker 1: A lot of the times you'll go and visit a property and it might look beautiful in the pictures and when you step foot in the property it's like is this the same property?
• 17:14
  Speaker 1: Because they've not maintained it.
• 17:17
  Speaker 1: That's the beauty of rent to rent.
• 17:19
  Speaker 1: We maintain the properties.
• 17:20
  Speaker 1: Why?
• 17:20
  Speaker 1: Because we need to make sure we keep the rooms filled.
• 17:23
  Speaker 1: Okay, so you're reducing the risk because you've got the break clauses.
• 17:26
  Speaker 1: You're also reducing the risk because you haven't bought a property that's potentially in the wrong area and now you can't get rid of it and you're stuck with it and you can't do anything about it.
• 17:36
  Speaker 1: The other thing is, of course, is once you know what works in certain areas, if you are looking to buy property, then it's easy for you to say well, if a property comes up in this street, I'm buying it.
• 17:47
  Speaker 1: Why?
• 17:48
  Speaker 1: Because I know exactly what works, I know exactly how to fill it and I know it's a really, really good investment for me.
• 17:53
  Speaker 1: And the flip side to that is as well.
• 17:55
  Speaker 1: You never know when a landlord themselves that you're working with might wanna sell the property that you manage.
• 18:01
  Speaker 1: Okay, I always say to all of my landlords if you're ever thinking of selling, come to me first, let's have a discussion, let's see if I wanna buy it or not.
• 18:09
  Speaker 1: As I spoke about earlier, that one I didn't wanna buy, but I have had two others where I am buying them and I'm doing purchase lease options, so we've locked the price in now.
• 18:17
  Speaker 1: I paid them a lease.
• 18:18
  Speaker 1: I basically look after the properties now as if they are completely my own, because in theory they are, and in three to five years time I'm gonna buy the properties for the set price that we've got.
• 18:29
  Speaker 1: Landlords get the money up until that time as well, so they're still making money, so everybody's happy.
• 18:35
  Speaker 1: So there's a lot of different creative ways that you can do this and that's why I love this strategy so much.
• 18:40
  Speaker 1: Another one at number four, and it's probably not one you'll hear from many people, but it's flexibility.
• 18:46
  Speaker 1: Okay, so you can take a property on an HMO property and you obviously have to manage and maintain that as an HMO.
• 18:53
  Speaker 1: But you can take a single-let property on and you can then do holiday lets on it.
• 18:57
  Speaker 1: Okay, so you could do that and do short-term rentals, so you could let that out to contractors over you know, two to three to four to five to six months.
• 19:04
  Speaker 1: You can let it to holiday makers, you can let it to whoever you want, but you can be quite flexible in what you're doing.
• 19:11
  Speaker 1: Okay, the old way of doing things with the HMO strategy was a lot of people looked for like a four-bedroom house with two reception rooms downstairs where they can make one into a fifth room.
• 19:21
  Speaker 1: Those days are pretty much gone.
• 19:22
  Speaker 1: You can grab a reception room, chuck a bed in it, but when it's got a fireplace and all of those sort of things, it's not always looking the best.
• 19:29
  Speaker 1: If you've ever got a room where the front door opens straight into that room as well, that can be quite good in some aspects because the tenant can come and go as they please, but it doesn't always look good, particularly on the pictures and things.
• 19:39
  Speaker 1: It's not very stylish and it's not really built for purpose.
• 19:42
  Speaker 1: It just shows that somebody's just chucked a bed and a wardrobe and stuff in a room and tried to make it into a bedroom.
• 19:48
  Speaker 1: But the flexibility that you can have through doing rent to rent is great, because not only can you get creative in the property so you can try different color schemes, you can try different furniture, just laying things out a bit differently as well.
• 20:03
  Speaker 1: But equally to that, you can try different strategies as well.
• 20:07
  Speaker 1: Now, when I said to you before, hmos are HMOs.
• 20:10
  Speaker 1: You have to be very careful with what you're doing with an HMO.
• 20:12
  Speaker 1: You don't want to take an HMO and think to yourself do you know what?
• 20:15
  Speaker 1: This would be better as a holiday let, and I'll let it individually on the rooms because you could actually void the HMO license.
• 20:21
  Speaker 1: If it's got an HMO license, it needs to be run and managed as an HMO.
• 20:25
  Speaker 1: It is very, very important that we stay compliant and that we do the right things for everybody.
• 20:30
  Speaker 1: But, as I say, I've got some landlords now that have got a couple of HMOs that we manage, but they've got a couple of buy-to-lets as well.
• 20:37
  Speaker 1: Okay, now we don't actually manage or do the buy-to-lets, but they want everything under one roof.
• 20:43
  Speaker 1: So they're saying, well, I don't really want to have a letting agent managing my buy-to-lets and then you guys manage it Now, I'd rather have you guys managing everything.
• 20:50
  Speaker 1: So what we have done actually is we do take the buy-to-lets on.
• 20:53
  Speaker 1: We don't give a guaranteed rent on those, but we manage them and we do them for a management fees.
• 20:57
  Speaker 1: But a few of those now we've spoken with the landlord about and we've turned into short-term rentals.
• 21:02
  Speaker 1: So we manage those as a short-term rental manager.
• 21:05
  Speaker 1: It's part of our business and it works really, really well.
• 21:08
  Speaker 1: It means the landlord earns a bit more because we're doing short-term rentals.
• 21:12
  Speaker 1: We earn more than we would if it was just a buy-to-let, where we get 50 to 90 pounds a month just managing it, and it's a win-win again.
• 21:19
  Speaker 1: So again, when you're talking to landlords, you may be going out there looking at their HMOs and things.
• 21:25
  Speaker 1: Do you have any other properties?
• 21:26
  Speaker 1: Yeah, I've got a couple of buy-to-lets.
• 21:28
  Speaker 1: Oh, brilliant, okay.
• 21:29
  Speaker 1: Well, what we can do is we look at buy-to-lets as well and we can offer a short-term rental service on those as well.
• 21:34
  Speaker 1: So not only can we take this on, look after it, maintain it to the highest standard, but we could take your buy-to-lets as and when they become empty or they become a hassle for you, convert those into short-term rental units and you could earn substantially more profits from your properties that you already own.
• 21:51
  Speaker 1: How does that sound to you and when?
• 21:53
  Speaker 1: You can go in there and you could start getting creative.
• 21:56
  Speaker 1: And this is something I help my one-to-one students with.
• 21:58
  Speaker 1: I help people on the rent-to-rent business builder with it's, getting creative, with the strategies.
• 22:03
  Speaker 1: We don't want to get created just for the sake of getting creative when we're doing a deal, but we do want to be looking at all the different options and it's very, very easy, when you're involved and when you're looking at a deal, to just go down the road, straight down that road, not thinking about any of the other options, not thinking of any other ways that you can help people.
• 22:22
  Speaker 1: You don't also want to be trying to do every single strategy, so you don't want to be focusing on HMOs and then jumping into service to accommodation and back to HMOs If you want to get them set up.
• 22:31
  Speaker 1: So you want to get a couple of HMOs, get them set up, get them systemized, which, as I say, which is what we show you how to do on the rent-to-rent business builder.
• 22:38
  Speaker 1: And if you want to do SA, do the ultimate service to accommodation, we'll show you how to set it all up there, and then, of course, you can mix the two together.
• 22:46
  Speaker 1: So I have an HMO business, okay, and I have service to accommodations as well, but make sure that you focus on one and that you nail one.
• 22:56
  Speaker 1: Why?
• 22:56
  Speaker 1: Because if you try chase two rabbits, you won't catch any.
• 23:00
  Speaker 1: As the old saying goes, you've got to focus on one thing, nail it and then focus on the next thing.
• 23:06
  Speaker 1: So, realistically, if you're looking at getting started with the rent-to-rent strategy, you need to decide which way you want to go first.
• 23:13
  Speaker 1: Is it HMOs or is it service to accommodation?
• 23:15
  Speaker 1: Okay, both of them have their challenges.
• 23:18
  Speaker 1: Okay, but both of them are also very, very profitable and they're managed and set up correctly.
• 23:23
  Speaker 1: We'll make you a decent living.
• 23:26
  Speaker 1: We'll get you out of that day job.
• 23:27
  Speaker 1: So just make sure that you know what you're doing and you surround yourself with the right people as well.
• 23:32
  Speaker 1: And, of course, at number five, it's all about scalability.
• 23:37
  Speaker 1: Okay, you can very, very quickly and systematically scale a rent-to-rent business a lot quicker than you can, potentially if you're doing a development, if you're buying the properties.
• 23:49
  Speaker 1: You know if you want to buy three properties in a year, it can take you a year just to buy three properties to get them over the line.
• 23:55
  Speaker 1: You know it can take six months to buy a property, to actually get it through, convincing and everything like that before you get your hands on it to do any work on it.
• 24:02
  Speaker 1: So it can be a very slow process.
• 24:05
  Speaker 1: But, rent-to-rent you can really set a rent-to-rent deal up in a day.
• 24:08
  Speaker 1: Now, I've never done it in a day.
• 24:09
  Speaker 1: The quickest I've ever done it is two weeks.
• 24:11
  Speaker 1: But you could, in theory, go and view a property and you always need to view the property first.
• 24:16
  Speaker 1: View a property in the morning, take the landlord or agent to lunch, okay, negotiate then, agree the negotiations, give the contracts over in the afternoon, get them all signed and then be given the keys in the evening.
• 24:28
  Speaker 1: You really could do that.
• 24:30
  Speaker 1: Okay, as I say, I haven't done that yet, but watch this space, maybe I will.
• 24:34
  Speaker 1: Maybe I'll document it as well.
• 24:36
  Speaker 1: But take a bit of time.
• 24:39
  Speaker 1: We don't have to.
• 24:40
  Speaker 1: You know it's not a sprint, it's always a marathon at the end of the day.
• 24:43
  Speaker 1: But we want to be making sure we're building up the no-liking trust.
• 24:45
  Speaker 1: If you tried to be too pushy, you're going to put people off.
• 24:47
  Speaker 1: But in theory, you make first contact with them.
• 24:51
  Speaker 1: You then look at the property.
• 24:52
  Speaker 1: You see whether the property is right for you and not all properties are right for you.
• 24:56
  Speaker 1: You don't want to be forcing deals, particularly with rent-to-rent, because if you do try and force a deal, sometimes you'll get the wrong one.
• 25:02
  Speaker 1: So you want to make sure that it's a good property, you're comfortable with it, you like the landlord or the agent, whoever you're going to be working with, because they can be as important as the property Because, remember, you're going to tie yourself into a few years here, potentially a five-year deal.
• 25:17
  Speaker 1: If you don't like that person or you think that something's off with them, then you don't want to be locked into a deal with them, do you?
• 25:23
  Speaker 1: So we're going to then do that deal.
• 25:25
  Speaker 1: We're then going to arrange when we're going to sign that deal from.
• 25:28
  Speaker 1: We're going to take that property over and then we can go in there and do what we need to do to the property, of course, and then in that time we can plan it all out.
• 25:35
  Speaker 1: And then, when you take the property on, you have your handover sheets, you make sure you do your inventory checks, you go around and everything.
• 25:41
  Speaker 1: As I say, the Rent-to-Rent Business Builder Training Program will show you everything to do on that, give you all the templates to do all.
• 25:47
  Speaker 1: That, gives you all the scripts, gives you everything you want.
• 25:49
  Speaker 1: So those are my five reasons why if you're thinking about getting into Rent-to-Rent, you need to just stop thinking about it and get on with it.
• 25:57
  Speaker 1: But again, as I say, you want to make sure you know what you're doing, make sure you put yourself in the right place, and to do so, visit thepropertyonleasecom.
• 26:05
  Speaker 1: I've spoken about training here, but there are so much free resource on that website that I've put together to help people who maybe aren't ready for training yet, aren't ready to invest in themselves.
• 26:18
  Speaker 1: They just want to find out more.
• 26:19
  Speaker 1: They really want to find out whether it's the right thing for them to be doing.
• 26:23
  Speaker 1: Go there, utilize, play with the tools, download the tools, do the master classes, follow along, follow through, make sure that you do, and then if you wanna take it to the next level, then we can always do that.
• 26:35
  Speaker 1: As I always say, I think I have one space on my one-to-one mentoring.
• 26:40
  Speaker 1: I like to do that over 12 months work with people on a one-to-one level.
• 26:43
  Speaker 1: They get the training tools as well.
• 26:44
  Speaker 1: But other than that, take the free resources and get out there and get started, and if I can help you in any way, please feel free to stick it in the comments or reach out to me on social media.
• 26:55
  Speaker 1: I'm always here.
• 26:56
  Speaker 1: I'm always happy to talk to people and if you wanna see any of the training programs or anything like that, then give us a shout.
• 27:03
  Speaker 1: A member of the team or myself potentially may be able to jump onto a call with you and answer any questions and see whether it's right for you.
• 27:09
  Speaker 1: So make sure, as I say, that you take action.
• 27:12
  Speaker 1: That is the main thing.
• 27:13
  Speaker 1: If you're not taking action, you're not getting out there.
• 27:15
  Speaker 1: You're not gonna build any sort of business that is actually gonna grow in the future.
• 27:19
  Speaker 1: And if you're thinking to yourself, I'll tell you what.
• 27:21
  Speaker 1: I'll get started in six months.
• 27:22
  Speaker 1: I'll get started in a new year.
• 27:24
  Speaker 1: I'll get started next year.
• 27:25
  Speaker 1: I wouldn't just get started.
• 27:28
  Speaker 1: As long as it's right for you, just get started.
• 27:31
  Speaker 1: Don't keep putting things off.
• 27:32
  Speaker 1: Why?
• 27:32
  Speaker 1: Because you'll put them off.
• 27:34
  Speaker 1: You'll put them off, you'll put them off and in a 12 months time you'll watch a video like this again and you'll think do you know what?
• 27:38
  Speaker 1: I wish I'd started this 12 months ago.
• 27:40
  Speaker 1: Imagine where I'd be now, and that's all it was.
• 27:43
  Speaker 1: When I started out, I just thought I need to get started.
• 27:46
  Speaker 1: I've gotta start sending the letters, I've gotta start going out there and talking to people.
• 27:49
  Speaker 1: Why?
• 27:50
  Speaker 1: Because in 12 months time, I don't wanna have any regrets.
• 27:54
  Speaker 1: What I wanna be able to say to myself is I got started, I got stuck in and now look at me, I've replaced my wage, I've got out of my day job.
• 28:01
  Speaker 1: If that's what you wanna do, all of a sudden now I've got three or four properties.
• 28:04
  Speaker 1: Hey, I wouldn't have had this had.
• 28:06
  Speaker 1: I have not just gone and got started, but you have to do it correctly and you have to know what you're doing.
• 28:12
  Speaker 1: So investing yourself, because that's the best investment you will ever make.
• 28:16
  Speaker 1: So I hope you've enjoyed this video.
• 28:18
  Speaker 1: Please feel free to check out the next video that will be popping up here shortly, and I will see you there.
• 28:23
  Speaker 1: Bye for now, talkin' about digital learning and all that.