Rent 2 rent management agreement

[Emma85]

Hi. I have a potential R2R opportunity in front of me but haven’t done this before. I can see a few property people selling specialised R2R management agreement templates online. Has anyone used them successfully? Or should I be going to a solicitor to have something drawn up? Thanks in advance 

[Kerry Chan]

Hi @Emma85

I wouldn't rely on on-line free templates - they are often inadequate and usually not fit for purpose (for your specific circumstances).  Accordingly, you should get this properly drafted by a good solicitor, who could save you a lot of trouble later on.

Have you considered all the risks in relation to rent-to-rent and appropriate risk mitigations?  For example, whether your headlease permits further sub-leasing (if you have a leasehold or a share of freehold), whether your mortgage terms permit this, whether the tenant of the headlease will conduct sufficient due diligence in relation to the tenants actually staying there via an underlease, etc.

For the avoidance of doubt, the above (a) does not constitute legal advice (and no lawyer-client relationship is formed in any way) and (b) is set out for your reference only.

Kerry

[Emma85]

Thank you Kerry, some important points for me to consider