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  • Rent-to-Rent

    Stakeholders Contractual Relationships

    Hello Rent to Rent tribe,

    I am a ARB qualified architect and I have developed the passion for investing in properties and I am keen to start my journey from a R2R strategy.

    I would like to get a better understanding of the contractual relationships between the stakeholders involved in the deal.

    More precisely, I would like to know how a R2R agent can legally act in behalf of the landlord and which kind of contracts links Landlord, R2R agent and tenants.

    Thanks in advance.

    Best Regards

    Andrea

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    Hi there, conctratual obligations are all part of the negotiations as you try to discover what the landlords wants, then you package a deal/scenario for LL which should benfit you both, once LL agrees then get a agremment drawn up by a sooicitor. Each R2R deal will be different to the next. Some deals you will be responsbile for maintiance and some deals LL will pay a percentage. All structural costs typically go to landlord. We personally aim to get refurb costs out within 6 months but have done deals where it's took 9-12 months, these deals have been on 7 year agreements so we felt we could put more money into the refurb as we had more to time capitalize on investment.

    If you want to see a typically r2r agreement I can send you one.

    What stage are you at with your R2R business?

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    Hello Vigan, thanks for your reply.

    I am interested in the part where you speak about the scenario LL - "R2R Manager".

    I still don't understand a few steps:

    1) Let's hypothesize that:


    • I like the house,
    • The house is managed by an agency
    • the LL is happy with my proposal,
    • the housing contract will start  in one month,
    • I have 15 potential tenants for a 3 bedroom flat,
    • I still don't have the house keys.
    • The flat is unfurnished

    What can I do if:


    •  I (as R2R manager) sign a contract with the LL for the entire rent of the house and then I am going to sign single contracts with each tenant for each room. If this scenario is correct, which type of contract is required between:
      • LL - R2R Manager
      • R2R Manager - Tenants
    • The R2R manager signs a management agreement with the LL and then help to fill up the contract between tenants and LL.  If this scenario is correct, which type of contract is required for:
      • LL - R2R Manager
      • LL - Tenants

    2) Since I haven't got the house keys yet, how can I accomplish the following tasks?


    • VIEWINGS: Should I ask the LL/agency to come to open the flat every time I have a viewer, or should I rent one month in advance the flat just to keep it for viewings?
    • BRING IN NEW FURNITURE: If I want to take pictures of the flat with new furniture on how can I do without keys?

    I am at the beginning of my R2R journey Vigan and yes, it would be great have a look at the agreement you mentioned.


    Apologies for the length of my message I hope I made myself clear.


    Thank you in advance.


    Andrea

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