Rent 2 Rent and Deal Sourcing - Should I have Different Companies

A lot of people are really interested in Rent to Rent, but another strategy that goes really well with Rent to Rent is deal sourcing. These both have lower start-up capital than the other property investing strategies which is why many people want to have them run together and they really do go hand in hand.

Whilst scouting for your Rent to Rent deals you will often come across great deals that just doesn’t suit your specific needs or niche and then it’s a very good idea to source these out to people who will be able to use them.

But how would you structure these? Would you run both under the same company or should you have two separate companies? This is only relevant if you have Limited companies set up, because if you’re doing this under a sole trader it’ll all be under your own name anyway.

The key thing is liability. Rent to Rent and deal sourcing has slightly different profiles and the key reason why it’s so important to have a Limited company is because it limits your personal liability. So if anything should go wrong, the business goes bankrupt or gets sued, they won’t be able to come after your personal assets.

Now, if you have both your Rent to Rent and deal sourcing businesses under the same company and anything should go horribly wrong in the one or the other they will be able to go after the profits of the other company as well. So if you run these as two separate companies, you minimise your liability risk.

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