Rent to Rent

Take a property on a management or company lease, then sublet to generate cash flow without owning the asset. Popular for HMOs and serviced accommodation where achievable rents exceed the headline lease cost.

Typical ROI 100%
Timeline 1-3 months
Difficulty Intermediate
Key metric Annual Profit

Strategy overview

  • Find landlords willing to lease on a 3 to 5 year company let or management agreement
  • Confirm planning, licensing, and lease terms permit the intended use (HMO, SA, professional let)
  • Furnish, license, and operate the property under your business
  • Pay the landlord a fixed monthly rent and retain the difference between income and operating costs
  • Scale by replicating across multiple properties

Advantages

  • Low capital requirement compared to ownership
  • Fast cash flow once operational
  • Scalable without lender approval on each unit
  • Test markets and locations without long-term commitment

Considerations

  • No capital growth; you do not own the asset
  • Income depends on lease length and renewal terms
  • Landlord consent, planning compliance, and licensing must sit in your name