If so, there is a superb article you should read on the Nearly Legal website and blog.
I won’t repeat the article here, other than to say that it points out the massive problems that can result from rent to rent.
Landlords are often completely unaware of the technical legal issues involved in renting to tenants. For example:
- You cannot create a license just by getting the tenant to sign a ‘license agreement’. Many so called licenses are actually tenancies
- Even if you do create a valid license, this does NOT mean you can evict the tenants on two weeks notice without getting a court order! (As many seem to think).
The sort of problems which can arise are:
- Landlords being liable under so called ‘agency agreements’ for what the agent does when letting the property – for example breaches of the tenancy deposit regulations
- Properties being used as HMOs without proper licensing – this is a criminal offence and carries a heavy fine
- Rent to rent tenants disappearing leaving the rent to renter landlord to deal with the subtenants
I would therefore urge ALL landlords involved in rent to rent to read the article which you will find >> here.
Note that I wrote a similar sort of article last year on the problems involved with Property Guardians.