Do I need a Limited Company to do Rent to Rent?

A question I often get asked by those starting their Rent to Rent business is how to set it up and whether they need to be a limited company to get going. This is an important topic to discuss since I find quite a lot of Rent to Rent newbies jump right into registering a company when the simple answer is that it’s not necessary. You do not need a Limited Company in order to do Rent to Rent. You can do Rent to Rent as a Sole Trader or as a Partnership. But it is not critical to register your Rent to Rent business anywhere in the UK when you get started.

Still certain people just feel a lot better when they’ve set up something official. If you should choose to go the Limited Company route, you should know that there are both pros and cons to this. One of the pros are that you are a bit more protected personally as your business functions as a completely separate entity. In other words; if anything should go wrong on the business side, they can’t come after or sue you on a personal side. If things get really bad, you can simply close that company and your personal assets will remain protected (unless you’re guilty of some form of fraud).

To find out what the rest of the pros and cons are in terms of setting up a Limited Company, watch our short video here.


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