Rent-to-Rent Calculator
Lease a property, sublet it for more, keep the spread: no purchase, no mortgage
Needs the landlord's mortgage lender and insurer to consent: many standard BTL mortgages prohibit subletting/company lets without it.
Gross monthly: £2,750
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Total setup: £7,500
Based on cash flow, ROI on cash invested, and payback period
Sublet income minus rent to landlord minus running costs
A rent-to-rent agreement needs to be genuinely structured as a company let, not an ordinary tenancy: a "licence" that in practice grants exclusive possession can still be reclassified as a tenancy by a court regardless of what it's labelled. Get it drafted by a solicitor experienced in rent-to-rent.
Subletting as rooms still needs full HMO licensing under the same rules as owning an HMO outright.