Rent to rent model

Is it right for all HMO properties ?
It’s been two months I signed an agreement with a company ( not registered with companies house). They operate a rent to rent scheme. Prior to my routine inspection, the local authority had become aware of their converting a room in the property that had not been deemed as a bedroom, rather the lounge space. I was not aware this had taken place. They were informed to put it right. LA had also written to them. I also discovered from the LA that they were claiming the empty property exempt scheme, and thus, had not paid any council tax. The LA was inquiring about the Property redress scheme they were part of. They are yet to respond to all my queries. The company then subsequently refused to pay their monthly rent and seeking they receive spare keys to the main entrance door. The tenants were all given 5 set of keys already. This company was introduced to me by the estate agent. We have been going back and forth on lots of things, ie council threatening to revoke my license, my mortgage equally in a predicament, relationship breakdown with company who is no longer engaging. They are still intending to approach the LA for a variation of the licence. I’m completely lost :disappointed:

I should have added that we had signed a 3 year deal with a six month break clause.

Just on the same topic with rent to rent, are district council different from local authorities in London in terms of their strict nature? ie the district council had stipulated that the company could not put anyone in the living room until such time as they had varied the licence.

Im sorry to say, but I think you may have made a big mistake. Google ‘rent to rent scams’ to see what can go wrong. The Council can hold you liable for breaches of licensing. You will likeky need legal help from a specialist housing solicitor to sort this out.

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lots of people on this forum ask about rent to rent. The overwhelming advice is not to do it. Maybe the agent is a “mate” of this company? I bet you were taken in by all their promises

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a “company” not registered with companies house is not a company.

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Desperately trying to rectify the situation. Any idea what immediate action I can take to turn the situation around as the managing agent is no longer engaging with me. They stopped paying their monthly rent, I’ve informed the local authority as to a number of issues at stake as they are hoping to be approved by the local authority as a fit and proper person, they are hoping that the local authority will vary the licence to 6 bedroom from a 5 bedroom ( both with an occupancy of 6) . Can I convince his tenants to pay me the rent instead? Do I have that right as the court process can take up to 3 months before eviction. Can I prevent them from gaining access into the property with the assistance of the police? Can I obtain a court order? Injunction etc? A solicitor is an additional cost to me which will not be my immediate choice. Your advice will be highly appreciated as I’m stressed out in all of this to know I took a wrong decision.

You are in danger of making the situation worse if you ask the tenant to pay you. You urgently need to speak to a competent solicitor who has dealt with rent to rent. I have used both JMW solicitors and Anthony Gold in the past and would rate both although other good firms are available.

Desperately trying to rectify the situation. your thoughts/ Any idea what immediate action I can take to turn the situation around as the managing agent is no longer engaging with me. They stopped paying their monthly rent, I’ve informed the local authority as to a number of issues at stake as they are hoping to be approved by the local authority as a fit and proper person, they are hoping that the local authority will vary the licence to 6 bedroom from a 5 bedroom ( both with an occupancy of 6) . Can I convince his tenants to pay me the rent instead? Do I have that right as the court process can take up to 3 months before eviction. Can I prevent them from gaining access into the property with the assistance of the police? Can I obtain a court order? Injunction etc? A solicitor is an additional cost to me which will not be my immediate choice. Your advice will be highly appreciated as I’m stressed out in all of this to know I took a wrong decision.

If you manage to evict your tenant, then you will be likely to inherit the occupants as your direct tenants.

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