Property News · June 29, 2013

Rent-to-rent, the latest property get-rich-quick scheme


Rent a house, then sublet the rooms to as many people as possible. We report on the rise of an ethically dubious practiceDaniel Burton is just 25, a dropout from the London School of Economics, but he’s raking in £35,000 a month in rent – without ever having to buy a property. He has let out 200 rooms in 40 properties across London, turning a fat profit by renting a three-bed house from a landlord, converting the lounge and dining room into bedrooms, cramming more tenants in and leaving them with just a kitchen to share. Welcome to the rapidly growing world of “rent-to-rent”, also known as “rent the rented” and “multi-let”.Burton calls it “arbitrage” – finding properties where a landlord has not realised how much more they could squeeze in rent from the house. In an online webinar he tells other potential investors how to “jack up the rent” and maximise the amount of money that can be obtained from local authorities through the Local Housing Allowance. Continue reading…

Source : theguardian.com
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