If you want to start or grow your Rent-to-Rent business, you must learn how to find, negotiate and secure rent-to-rent deals. In this article, I will focus on the first and probably the most challenging and important step of finding your rent-to-rent deals.
You see, even if you can negotiate like the famous FBI agent Chriss Voss and be a great sales closer like the Wolf of Wall Street, it's useless if you cannot find deals. So, bookmark this page and come back here when you want to find Rent-To-Rent Property Deals.
Now, everyone in the UK is using Rightmove to find properties because it's among the most popular platforms. Still, in my experience, this is not the best way to find rent-to-rent deals. Especially in the beginning when you don't have a proven track record and your company is not established yet.
Also, among all the strategies to find rent-to-rent deals, using Rightmove is one the most expensive and time-consuming because you mainly deal with real estate agents and not directly with the landlord.
You can find some of the main disadvantages below:
- Less flexibility in the agreement as the agency wants to use its contracts and is reluctant to insert break clauses.
- Less negotiation power as you don't speak directly to the landlord
- The process to close the deal is longer because you have to deal with the estate agency and its qualification process.
- Higher rent because the property is on the market, and maybe the landlord has already received other offers and expects you to compete to secure the property
- Higher costs because, in most cases, you need to factor in the costs of the agency's fees.
So, in this article, I will share with you in detail the best ways to find landlords interested in rent-to-rent and negotiate directly with them.
Let's start with the best platform available in the UK to find and pitch rent-to-rent deals directly to landlords.
1. Open Rent
What is Open Rent?
Open Rent is an online property letting platform that also provides different services. Landlords in the UK use it to sign contracts, manage deposits, collect rent and list their properties on all major portals.
Open Rent is one of the best online platforms to find potential rent-to-rent deals because you can contact the landlord directly and set alerts to receive instant notifications when a new property is available in your goldmine area.
Let me show you how this works and how to set it up to save time and receive new potential rent-to-rent deals directly in your inbox as soon as they become available on the market!
First, you need to open an account. Click here
>> and follow the step-by-step process explained below.
Click on "Sign In" on the top right corner and follow the instructions to open your account. As you can see from the following screenshot, you can use different methods to create your account.
Once your account is created, write the name of your goldmine are in the search box and click on "Search".
Now, you should be able to see every property available on Open Rent in the area that you have searched. This is where we can refine our search before moving to the next step.
Usually, I select between 1-3 Km from the city centre. Depending on the area, you will set the other parameters. , click on the green "Search" button.
Have a look at the results to see if they match your search otherwise update the parameters. Once you are happy with your search criteria click on the (2) Email Alert.
This is how you set automated alerts to receive notifications directly to your inbox! Make sure to receive a notification as soon as a new property that match your criteria go live on the platform.
This is very powerful because now you don't need to manually monitor Open rent every day, this little automation will do it for you! Your initial set up on Open Rent is done.
PRO TIPS: You can set multiple alerts targeting different areas and also multiple criteria.
Time to find landlord potentially interested in giving us their properties on a guaranteed rent agreement. When you find a property that could be suitable for your rent-to-rent business, click the "Message Landlord or Request Viewing" button.
You can also click the little star on the top right of the ads to add the property to your favourites, so it's easy to find it later if you need it.
Now, when you message a landlord your main goal is to book the viewings. If the booking is not straightforward, then try to speak directly to the landlord. Let me share with you my rent-to-rent templates to book viewings on Open Rent.
How To Secure Viewings For Rent-To-Rent On Open Rent (Copy and Paste Templates)
With the goal in mind, try to keep your first message short and straight to the point.
Hi ______,
Is it possible to view the property _______ ?
Cheers.
Some landlord will book you straight away! So you can show up at the viewing, create rapport and pitch your solution.
However, this is a small percentage. Most landlords will ask you a few questions before confirming the viewing. So, what to do in that case?
PRO TIPS: At this stage DO NOT pitch your service, instead trying to bring them on the phone.
I am looking to rent for at least three years, is that an option for you?
Before confirming the viewing, I have a few questions. Is it possible to have a quick call?
Thank you in advance.
Cheers.
As you can see here, the landlord asked me many question to pre-qualify me. Rather than pitching a corporate let or introducing my company as a relocation agency, I just opened with a question that embodies an attractive preposition for the landlord (long term tenant).
Then, I repositioned myself in the conversation and I took a position of power when I said: Before confirming the viewing, I have a few questions. As you can see, it looks like, I am the one deciding to confirm the viewing or not.
My goal now is to bring the landlord on the phone to increase my chances of winning the viewing and avoid more questions about my income, how many people will stay in the property and so on.
This is why I asked the landlord to have a quick call. Most of the time, I am able to get on the phone with the landlord and arrange the viewing if they are open to corporate let.
Great!
Can I have your number, please?
I will give you a call around ____________.
Cheers
As you can see, I won the call. Obviously I cannot share her number but she sent me her number and I spoke to her.
Now, the reality is that no many properties are good for rent-to-rent and other times is the landlord that is not open to it.
In this case, the landlord decided not to go ahead with my proposal and that's ok. Guaranteed Rent and property investment in general is a number game.
So, if you are struggling to get your first or next rent-to-rent deal, don't be discouraged, keep going and you will find someone opens to it at some point.
If you want to check your messages and keep track of your conversations with landlords on Open Rent, click to "Manage" on the navigation bar and then "Dashboard".
When you are in your Dashboard, you can use the left navigation bar to find the properties that you marked as favourites.
To access all your messages on Open Rent, click on the green button "See All Messages".
2. SpareRoom
What is SpareRoom?
SpareRoom is the biggest flatmate-finding service in the UK and possibly worldwide. However, you can also select the entire flat in their filters and activate personalised notifications. So, this is my second best source of potential rent-to-rent deals.
However, SpareRoom is not a "guaranteed rent" friendly platform, and it can be tricky to reach out to landlords without getting your account flagged or even permanently closed. It happened to me!
Also, most of the properties on SpareRoom are flats which are not ideal for rent-to-rent. You can learn more about the best property types for rent-to-rent on my previous article.
But don't worry, let me show you how to transform this platform into an automated gold mine machine for your rent-to-rent business without getting your account permanently closed.
How To Secure Viewings For Rent-To-Rent On SpareRoom (Without Flagging Your Account)
First of all, if you don't have an account yet, click on the "Register" button and follow the instructions to open one. This will be handy later when I show you how to save your search and automate the alerts.
Now that you have your account set up, click "Search" on the navigation bar. Then click on "Advanced search" on the tab below. This will give you access to more criteria for your search.
As you can see there are a few critical parameters that you want to check in section 3,4, and 5.
In section 3, select "Location" and type your location in the search box.
In the section 4, unselect "Rooms in existing shares" because it's not suitable to find rent-to-rent deals.
In section 5, insert a minimum Rent £ to avoid any sort of misplaced ads. So, if in your area a one bed flat is minimum £500, then this is what you want to type there.
Below you can find an example of a completed search. As you can see, I usually select 3 miles radius below area in section 3. I found that this is an optimal settings to find more potential deals.
You can play around with the different settings and when you are happy with it save and check that the results reflect your expectations. If you find too many non-relevant ads, then you need to refine further your search criteria.
Once your search results match your expectations, you are ready to scroll to the bottom of the property ads and click on the "save" button to save this search and activate email alerts.
This is powerful because you can be notified the moment a new property that match your search criteria become available in your area. This is what I call Rent-to-Rent deals on autopilot!
You may notice that some new ads have an "Early Bird" banner at the bottom. Unfortunately, it means that only people with an upgraded account can contact the landlords within the first 7 days.
Now, depending on your area and the competition, you may want to consider to upgrade your account when actively looking for new property to take on your rent-to-rent portfolio.
After 7 days, the details of the landlord are available to everyone on the platform. Now, the messaging on this platform is crucial because you can easily get your account closed permanently.
This is what happened to me.
I messaged a landlord and I disclosed via message that I was running a relocation agency and I was looking for a company let... BIG MISTAKE!
After this message, I received an email from Katie (the sherif of SpareRoom) : "Your account has been flagged by our security system and I can see that you have sent messages to and/or collected phone numbers from 'Room Offered' advertisers offering a company let".
When I read this email I was confused because I didn't offer my service to anyone. I was actually looking for a property to rent like anyone else on this platform. PLUS, I couldn't get into my account as this message appeared after the log in: "Sorry, your account has timed out". So, I asked for clarifications.
The answer, this time came from another SpareRoom's sherif and it was almost identical: "Offering a company let contravenes our code of conduct". So, I went to check SpareRoom's terms and conditions, privacy policy and the code of conduct.
So, apparently is possible to search rent-to-rent property on SpareRoom but there are a few requirements:
1. Registered company and freelancers can use the platform to find rent-to-rent deals but MUST be registered with a government approved Property Redress Scheme.
2. The only two government approved property redress schemes in the UK are The Property Ombudsman and The Property Redress Scheme. (You can check this article to learn why I choose the Property Redress Scheme for my rent-to-rent business).
3. The company name on your SpareRoom account MUST match the trading name on your membership certificate.
If you are a freelancer, you can alternatively use the agency account or have an individual subscription to one of the two redress scheme to overcome this limitation.
As you can see here, even after you comply with their initial requirements, your account may be flagged from their system because you may write a keyword that trigger their sherifs, you could send too many messages, and so on. So, what's the best strategy on SpareRoom to find rent-to-rent deals without risking your account?
The short answer is: Trying to get landlords on the phone rather than writing in the chat and if you are targeting multiple locations, open multiple accounts. Use the templates provided when we discussed Open Rent.
Remember, less you say the better. The only goal of using these platforms is to book viewings and speak to landlords.
PRO TIPS: You can use something like Lastpass to keep track of all your username and passwords.
3. Facebook Groups and Marketplace
Using Facebook Groups and Marketplace can be a good way to find rental properties and potential rent-to-rent deals. Here are some steps you can follow to use these tools effectively:
Search for relevant groups: Join Facebook groups related to real estate, renting, or housing in your area. You can also try searching for groups that are specifically focused on rent-to-rent deals.
Look for listings: Once you've joined a few groups, start looking for listings that might be relevant to you. You can filter your search by location, price range, and other relevant criteria to find the right property.
Contact the seller: If you find a property that you're interested in, reach out to the seller through the Facebook group or Marketplace listing to ask any questions you have and express your interest.
Negotiate the terms: If you're able to agree on the terms of the deal, make sure to get everything in writing. This can include the length of the rental period, the price, and any other terms that you've agreed upon.
Follow up: After you've completed the deal, be sure to follow up with the seller to ensure that everything is going smoothly. If any issues arise, it's important to address them promptly to maintain a positive relationship.
It's important to remember that using Facebook Groups and Marketplace can be a bit riskier than using a traditional rental agency or property management company. Make sure to do your due diligence and thoroughly research any potential deals before committing to anything.
PRO TIPS: In my experience, Facebook groups and Marketplace work only in some areas, so if you don't find anything in your area, this is not the right channel to reach out to landlords in your goldmine area. The good news is that I gave you many more! So, keep going!
4. Gumtree
What is Gumtree?
Gumtree is a classifieds website that allows users to buy and sell a wide range of goods and services, including rental properties.
Here are some steps you can follow to use Gumtree to find rent-to-rent deals in the UK:
Search for listings: Go to the Gumtree website and use the search function to look for listings in your area that might be relevant to you. You can filter your search by location, price range, and other relevant criteria to find the right property.
Contact the seller: If you find a property that you're interested in, reach out to the seller through the Gumtree listing to ask any questions you have and express your interest.
Negotiate the terms: If you're able to agree on the terms of the deal, make sure to get everything in writing. This can include the length of the rental period, the price, and any other terms that you've agreed upon.
Follow up: After you've completed the deal, be sure to follow up with the seller to ensure that everything is going smoothly. If any issues arise, it's important to address them promptly to maintain a positive relationship.
5. Networking Events
Networking events can be a great way to connect with potential landlords who might be open to rent-to-rent deals.
Here are some tips to help you make the most of these events:
- Research the event and the attendees: Find out as much as you can about the event and the attendees beforehand. This will help you tailor your approach and know who you should be targeting.
- Prepare an elevator pitch: Have a brief and compelling summary of who you are, what you do, and what you're looking for, ready to go. This will help you quickly and effectively introduce yourself to potential landlords.
Elevator Pitch Example for Rent-to-Rent:
"Hi, my Name is [You Name], and I'm the director of [Name of Your Company].
I'm currently looking for rental properties in this area to rent to other people or businesses.
My rent-to-rent model allows landlords to earn a passive income without having to worry about the day-to-day management of the property.
We also guarantee rent for three to five years without voids - Guaranteed!
I have a track record of successfully finding and managing tenants, and I'm always looking for new opportunities.
If you have any rental properties that you're interested in discussing, I'd love to chat and see if we can work together."
This elevator pitch highlights your relevant skills and experience, explains the rent-to-rent model, and clearly states what you're looking for. It's concise, informative, and to the point, making it easy for a landlord to understand and consider your offer.
Remember to tailor your pitch to your specific audience and goals, and always be prepared to answer any questions or follow up with more information.
- Be proactive and approachable: Be bold and start a conversation with someone new. Be friendly, approachable, and interested in what they have to say.
- Follow up after the event: If you connect with someone at the event and they seem interested in your rent-to-rent idea, follow up with them after the event to continue the conversation.
- Don't be too pushy: While it's important to be proactive, it's also important to respect people's boundaries and not be too pushy. If someone isn't interested, respect their decision and move on.
By following these tips, you should be able to find landlords who are open to rent-to-rent deals at networking events. Remember to be professional, respectful, and focused on building mutually beneficial relationships.
PRO TIPS: Networking events are great for forging authentic relationships, but it takes time and is a long-term game. So, when you join a relevant networking event near you, be consistent and attend at least seven consecutive times. People will start remember your name and your face.
6. Skips' Walking
This is one of the most effective and cheap ways to find rent-to-rent deals in your goldmine area. I named it Skips' Walking.
I don't know anyone who has talked about this strategy, and if you try it, you'll be impressed by what opportunities can open for you.
This is how Skips's walking works.
When you walk through your goldmine area and see skips outside properties, see if anyone is around. Usually, you will find builders.
The first question I always ask is: Hi, is it your property?
Usually, it's not, and I ask them if they know if the landlord is renovating the property to rent it out. Whether they know or not, it doesn't matter.
My following line is: I am looking to rent a property in this area, which looks perfect. Can you give me the landlord's number so I can ring him?
You'll be surprised how many people will give you the landlord's number.
Sometimes, they will ask you to give them your number so they can pass it to the landlord. In this case, give them your mobile number and NO, your business card.
You have more chances to receive a call back if you don't disclose your business.
Pro Tips: After you've spoken to the landlord - no matter the outcome - go back to thank the builders or whoever put you in contact with the landlord and tell them that you are looking for four more properties in that area because you run a relocation agency and you'll be happy to offer them a referral for any successful property they refer to you.
7. Just Sold
This is one of the easiest ways to have landlords ring you.
Every time you look in your goldmine area, and see that a property has just been sold, put a simple note inside their door or letterbox.
Hi, I am looking to rent on this road.
Please give me a call back if you are interested.
[Your Name]
[Mobile Number]
That's it! It's that simple.
If the new landlord is looking to rent the property, he/she will definitely give you a call back because they can save money from the agency and aim for a quick rent.
