Jacquie Edwards - Rent to Rent: Your Questions Answered

Rent to Rent - Your Questions Answered

First published in 2015 by

Panoma Press Ltd

48 St Vincent Drive, St Albans, Herts, AL1 5SJ, UK

www.panomapress.com

Book layout by Neil Coe.

Printed on acid-free paper from managed forests.

ISBN 978-1-909623-96-5
eISBN 978-1-784521-85-1

The right of Jacquie Edwards to be identified as the author of this work has been asserted in accordance with sections 77 and 78 of the Copyright Designs and Patents Act 1988.

A CIP catalogue record for this book is available from the British Library.

All rights reserved. No part of this book may be reproduced in any material form (including photocopying or storing in any medium by electronic means and whether or not transiently or incidentally to some other use of this publication) without the written permission of the copyright holder except in accordance with the provisions of the Copyright, Design and Patents Act 1988. Applications for the Copyright holders written permission to reproduce any part of this publication should be addressed to the publishers.

This book is available online and in bookstores.

Copyright 2014 Jacquie Edwards

I want to dedicate this book first to my parents, Dan and Sue Edwards, who have always supported me. You always told me that I could do whatever I set out to do! Even when you thought I was crazy for quitting a well-paid and respected corporate job, you still stood behind me and believed in me. I would not have been able to achieve my current success without your constant confidence in me.

Also, I want to thank my wonderful partner, Anthony DSouza, who has been beside me for this entire journey into Rent to Rent and property investing. His steadiness, analytical mind and wealth of business knowledge have helped keep me on track through all the ups and downs. Its been a great journey PoC and thanks for putting up with all the tears! Im glad we were able to do this together and I couldnt have done it without your support.

And finally, thank you to everyone who submitted questions and helped me put this book together. It couldnt have been written without the help of our amazing coaching and mentoring clients and their encouragement. Helping you to build your property businesses and being able to share our learning with all of you keeps me focused and constantly growing.

I started to invest in property in 1995, doing it the hard way, on my own because there were no fantastic books like this, or courses or property network meetings where you can get support and help from other people. As a result it took me eight years to become financially independent by replacing the salary from my corporate job with passive income from my property portfolio. However, using the strategy outlined in this book, I have witnessed many people replace their income in as little as 12 months, including the author of this book, Jacquie Edwards, who has really mastered this particular strategy. I am delighted Jacquie has decided to share her experience and knowledge with you.

I meet thousands of new and experienced property investors each year, and without doubt the number one reason for most of those people wanting to invest in property is to replace their income so that they can spend their time doing whatever they want, instead of having to work for a living. This is closely followed by the number two reason for investing which is to build an alternative pension to give them financial security in the future.

In my opinion the very best strategy to achieve both of these outcomes is to invest in Houses of Multiple Occupation (HMOs) often know as Multi Lets. This is where, instead of renting out the whole property on one AST (assured shorthold tenancy) contract to a tenant, you rent out each of the individual bedrooms to a different tenant who is happy to live with other people and share facilities, such as the kitchen, a living room and the bathrooms. This strategy will generate far more income for you from each of your rental properties than traditional single let properties.

When done correctly, after all of the expenses, each HMO should generate anywhere between 500 to 1500 profit per month, depending on number of rooms, market rents and of course location. With this amount of profit per property, you do not need to have many properties to replace your income. For most people, having between four and six of these properties could be enough to replace their income. This is why HMOs are becoming such a popular investing strategy.

However, there are two problems with the HMO strategy. The first one is that it can be quite capital intensive to buy a property and get it set up in the correct way. The second issue is that it is more work and hassle than a single let property. This is the reason why the Rent to Rent strategy outlined in this book is so powerful. With this Rent to Rent strategy you dont need a huge amount of capital to get started and so it is a great way for you to discover if you like being an HMO landlord without having to make the large financial commitment of actually buying one.

The Rent to Rent strategy, when done correctly, can be one of the best strategies to quickly generate significant cash flow for you and that is how so many of my students have replaced their income in such a short amount of time. The one downside is that you dont actually own the properties, so it does not help you build a pension for the long term. Having said this, once you have gained some experience and track record using the Rent to Rent strategy it is often far easier to find and attract people who may want to joint venture with you or lend you the money to actually buy your own properties which can then be let out as traditional HMOs.

I often hear people say that certain strategies dont work in their area, and that may well be true for some strategies. However, with this particular Rent to Rent strategy, I know it will work in your area because I personally know investors who are successfully applying it all around the UK, including expensive areas like London, Edinburgh and Oxford where Jacquie has done so well.

Enjoy this book and take note of what Jacquie shares with you, as she really has become a master of this strategy.

Good luck on your property journey.

Best wishes,

Simon Zutshi

Author of Property Magic

Founder of property investors network

This book has been written as a guide that you can either read straight through or dip in and dip out of whenever you have a question. Ive structured it in the order that you would be doing the process but you may need to skip forward or back depending on where you are in your property business and what you already know. The book is written in question and answer format and you can use the table of contents at the beginning to find the questions that apply to you.

Ive answered the questions in as much detail as possible without making the book unmanageable and filled with legalese. Each Rent to Rent situation can be different and can be structured differently so it is impossible to cover all of the possibilities in a book. Ive outlined some different options throughout the book and if you need more information feel free to book a FREE coaching call with me through my website www.JADESuccess.co.uk.

There is also a section at the back with some useful pointers and recommendations of companies that I use and trust. Some of the links I provide may be affiliate links which means I might get some credits if you use their services, but wherever possible Ive negotiated discounts for you when you use one of my links as well!