Page 18 - Lettings Revolution
P. 18
pilot
The pilot business is a substantial lettings agency managing
upwards of 2000 properties and dealing with over 100 move ins a
month. Over 80% of their new lets are now carried out in a Primary
Tenancy™ basis and the whole system has proven to be an
invaluable asset to the business.
Other Considerations
Rent to Rent
There has been some negative publicity about ‘rent to rent’ in
our own publications. On the face of it there are some similarities
between ‘rent to rent’ and the Primary Tenancy™. However, when
you look closer the two are very different. In a ‘rent to rent’
transaction there are four players involved, the landlord, the
agent, the ‘rent to renter’ and the tenants. Whereas with the
Primary Tenancy™ there is still the classic three, the landlord, the
Primary Tenant agent and the tenant. Rent to rent is not
especially bad in theory, it has got a bad reputation because of
the unscrupulous, unprofessional way in which some people have
operated it. When it comes down to it, any service, the Primary
Tenancy™ or conventional agency, depends on the honesty and
professionalism of the service provider.
Mortgagees
Some mortgagees will look at the Primary Tenancy™ and disal-
low it because they will classify it under the general heading of
‘subletting’. In these cases you would simply offer your conven-
tional agency agreement. However, once lenders understand
how the Primary Tenancy™ works and crucially that there are still
only three not four parties involved, we believe that they will treat
Primary Tenancies differently from other sublets and eventually
allow them. We will be lobbying these lenders to educate them
and keep you informed about our progress.
The pilot business is a substantial lettings agency managing
upwards of 2000 properties and dealing with over 100 move ins a
month. Over 80% of their new lets are now carried out in a Primary
Tenancy™ basis and the whole system has proven to be an
invaluable asset to the business.
Other Considerations
Rent to Rent
There has been some negative publicity about ‘rent to rent’ in
our own publications. On the face of it there are some similarities
between ‘rent to rent’ and the Primary Tenancy™. However, when
you look closer the two are very different. In a ‘rent to rent’
transaction there are four players involved, the landlord, the
agent, the ‘rent to renter’ and the tenants. Whereas with the
Primary Tenancy™ there is still the classic three, the landlord, the
Primary Tenant agent and the tenant. Rent to rent is not
especially bad in theory, it has got a bad reputation because of
the unscrupulous, unprofessional way in which some people have
operated it. When it comes down to it, any service, the Primary
Tenancy™ or conventional agency, depends on the honesty and
professionalism of the service provider.
Mortgagees
Some mortgagees will look at the Primary Tenancy™ and disal-
low it because they will classify it under the general heading of
‘subletting’. In these cases you would simply offer your conven-
tional agency agreement. However, once lenders understand
how the Primary Tenancy™ works and crucially that there are still
only three not four parties involved, we believe that they will treat
Primary Tenancies differently from other sublets and eventually
allow them. We will be lobbying these lenders to educate them
and keep you informed about our progress.
