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With a Rent to Rent agreement property owners are contacted either directly or via letting agents and offered a guaranteed rent.
This means owners no longer incur the difficulties of dealing with tenants, including small maintenance issues and rent responsibilities.
As an agent it becomes your duty to make sure the property is suitable for letting and find tenants looking to rent.
The profit within this agreement for an agent lies between the difference of rent paid to the owner against the rent paid by the tenants. This is an attractive offer to property owners because it protects them against any rent that isn't paid while the room is vacant and takes away large admin fees such as vetting potential tenants and chasing payments.
With HMOs & Multi-Lets it's advisable to make sure the property has the optimal amount of rental bedrooms and this can result in refurbishment and structural work costs. This outlay of capital is usually classed as a revenue cost so becomes tax-deductible.
At Elite Financial Accounting we have a portfolio of clients currently involved with Rent to Rent schemes so our accountants naturally have excellent knowledge of current regulations and strict legal requirements.