Rent-to-Rent Works—But Only If Done Right
The rent-to-rent model can be a game changer for landlords—guaranteed income, no tenant headaches, and full property management. But like any investment strategy, it only works if it’s executed properly.
Many landlords enter into rent-to-rent agreements without understanding the fine print, and it ends up costing them money, time, and peace of mind. In this article, we uncover the 10 most common mistakes landlords make in rent-to-rent partnerships—and more importantly, how to avoid them.
1. Choosing the Wrong Rent-to-Rent Company
The mistake: Partnering with an inexperienced or untrustworthy operator.
The fix: Always check:
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Company registration (prefer Ltd or LLP structures)
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Reviews or testimonials
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Proof of insurance and compliance knowledge
Look for companies that treat your property like a long-term investment, not a short-term cash grab.
2. Not Using a Legally Binding Lease
The mistake: Letting a rent-to-rent company operate without a proper lease or using a basic AST.
The fix: Always use a commercial lease agreement (company let). This ensures clarity on responsibilities, rent terms, and eviction procedures.
A strong contract is the foundation of a risk-free deal.
3. Ignoring Licensing or HMO Rules
The mistake: Assuming the rent-to-rent company is handling compliance—when they’re not.
The fix: Confirm who is responsible for:
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HMO licensing (if required)
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Fire safety equipment
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EPC, gas safety, and EICR certification
Non-compliance can result in fines—even if you’re not managing the tenants directly.
4. Agreeing to an Unrealistically High Rent
The mistake: Accepting a rent offer that seems too good to be true.
The fix: Evaluate the numbers. Rent-to-rent operators still need to:
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Cover voids
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Furnish and maintain the property
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Pay bills (if agreed)
If the rent seems overly generous, there’s usually a catch—like cutting corners or ignoring compliance.
5. Forgetting to Clarify Maintenance Responsibilities
The mistake: Not outlining who handles repairs, and what counts as “wear and tear.”
The fix: In the lease, define:
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Who pays for repairs under £250
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Who handles emergencies (e.g., boiler breakdowns)
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How maintenance issues are reported and resolved
Ambiguity leads to disputes—and unexpected bills.
6. No Exit Strategy in Place
The mistake: Locking yourself into a long-term contract with no break clause.
The fix: Ensure your agreement includes:
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A reasonable notice period (e.g., 6 months)
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Termination conditions for underperformance or late rent
You should never feel trapped in a poorly performing agreement.
7. Skipping Property Inspections
The mistake: Assuming the rent-to-rent operator is checking everything.
The fix: Agree on scheduled inspections (quarterly or semi-annually) and request reports or photos.
Even in a hands-off model, you should still stay informed.
8. Not Informing Your Mortgage Lender or Insurer
The mistake: Failing to disclose the rent-to-rent setup to your lender or insurance provider.
The fix: Notify both parties in writing and ensure your cover is updated. Some insurers offer specific rent-to-rent or commercial subletting policies.
If something goes wrong, you don’t want your claim denied.
9. Letting the Property Fall Below Market Standards
The mistake: Assuming the rent-to-rent company will always upgrade or maintain the property.
The fix: Outline minimum standards in the lease for:
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Cleanliness
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Furnishings
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Repairs and redecoration
Your property’s value and tenant appeal depend on consistent standards.
10. Focusing Only on Rent, Not the Relationship
The mistake: Treating the deal as a transaction, not a partnership.
The fix: Look for operators who communicate, care, and want a long-term relationship, not just quick cash flow.
A good rent-to-rent agreement should feel like a win-win—for years, not months.
Bonus Tip – Vet the Agreement Like a Business Contract
Before signing anything:
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Review the lease with a solicitor (ideally one experienced in landlord law)
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Ask for a sample management report or inspection schedule
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Confirm what happens in worst-case scenarios (non-payment, damage, exit)
Conclusion: Maximise Profit by Minimising Mistakes
Rent-to-rent can offer landlords a powerful path to steady income with no stress—but only if it’s done correctly.
Avoiding these 10 mistakes will help you:
✔️ Protect your property
✔️ Keep your income stable
✔️ Build a reliable long-term partnership
If you’re considering rent-to-rent, we’re happy to review your property and walk you through exactly how we manage every responsibility, legally and transparently.
Book your free consultation today and see how much smoother letting can really be.
