Rent to rent promises a route into the world of bricks and mortar without the need for the large sums of money needed to buy property; so far so good. But what does it really involve and how can you assess whether it is the right business for you?

I know of many people who have jumped into a rent to rent business, immersing themselves, working long hours to get it off the ground and only to find out months or even years later that it wasn't what they expected and did not deliver the return in satisfaction or finances that they had worked so hard for.

So what should you ask yourself when considering a rent to rent business of your own, so that you do achieve the return in satisfaction and the finances you deserve?

By scoping what considerations need to be made, you will have the reassurance that you haven’t missed something important, and you can begin to identify the areas which excite and resonate for you, while also identifying those that might pose a challenge for you. 

1. What is the time commitment required vs the time you have available?

While it is possible to get going before being fulltime in your new business, this is only a short-term arrangement. You need to scale up your business to be profitable and that takes 100% commitment

2. Understand the working conditions, hours & roles you will need to fulfill.

You have a lot of roles to cover, which include setting up new house shares (which takes a lot of work, with endless jobs to get done in as short a time frame as possible), managing the day to day of property maintenance (good if you are a practically minded person) and managing tenants themselves (sometimes great fun, while other times, very challenging).

The 9-5 is nowhere to be seen! Things need to get done and done fast!

3. You will be running a business (rather overlooked in most rent-to-rent training).

It is much better to set things up well from the beginning to avoid much bigger problems further down the line. This involves having good legal documentation, running a management business that complies with all the regulations, and ensuring you have good financial management, cashflow projection figures and funds to support your planned growth.

4. Focus & become the expert with an appetite to learn

There is a lot to learn in this business, and there are always changes in the areas of management compliance, property finance and building regulations to keep abreast of, so you will need to enjoy learning.

5. Key Experience/skillsets required of you

You are on your own, so taking responsibility for everything in your business is a great start. Add to that the ability to communicate well, to sell your service and build a team around you, and all with plenty of determination.

6. Identify your qualified professionals, other service providers, support and backup in areas where you may lack experience & expertise

You will need an accountant and bookkeeper, a landlord advice line is also very valuable. You will want a raft of good contractors as well as someone who can cover for you and someone who can give a little support when needed.

7. Software and IT- what is your attitude to software & tech?

Good software can do one of two things; waste or save a lot of time and money. You need the latter; in four areas of your business:

• property management
• tenant management
• business accounts management
• CRM system for landlord & tenant inquiries

8. Interest & passion for the business sector

A love of property and a pleasure in meeting and working with people is necessary. This is a business with lots of tasks, so if you are good at identifying targets and thrive on getting things done, it will be a great benefit.

9. Be clear on your values and seek alignment with everyone you work with.

It is important to be clear on what your personal values are. Whether your business is set up with an existing brand or you are approaching Landlords and service providers directly, you should seek business with people whose values align with your own. Business will be better and more rewarding when you do.

10. Your motives (it shouldn’t only be about the money)

Your job is to lead and motivate people, making them want to be involved with you and your business. You will need a strong motive to be successful which is beyond simply making money, as there will be many a challenge to be overcome before the money is flowing into your account and staying there.

Be clear on what that is, so you can remind yourself regularly to help keep you on track for success.

It is hard work converting and managing HMO houseshares and there are plenty of challenges to overcome and yet I often have conversations with people who see the cash turnover generated much more clearly than the hard work involved.