What Is the Initial Cost of Rent to Rent?

Rent to Rent is not a no-money down, get-rich-quick scheme; it is an actual business so there are some start-up costs to consider. The first thing you need to establish when starting on your budget spread sheet is how much money you have available to get started in order to at least cover the costs of some of your absolute must-haves when it comes to Rent to Rent. These are a few of the must-haves:

1. Join a redress scheme.

This will either be the property redress scheme or the property ombudsman. This average about 200 pounds per year. This is one of the very first things you should do when getting started for various beneficial reasons such as the fact that it looks great on your marketing material and gives you much more credibility. Legally you HAVE to be registered, so why not do it as soon as possible to take full advantage of all the benefits.

2. Get business insurance

The cost of your insurance will depend on your gross revenue, but on average you’re looking at about 100 pounds for your first year. It’s important for you to talk to an insurance broker that gives you accurate advice and recommendations based on your business needs and requirements. Although you get a wide variety of different business insurance policies your Public Liability insurance is one of the business insurance policies that MUST be added to your portfolio based on UK legislation.

3. Register with the ICO’s (Information Commissioners Office)

This is all about data protection. If your business requires that you keep private and confidential information of other parties, they will ensure that you remain GDPR compliant. They also offer valuable resources on their website regarding data privacy and give people peace of mind in terms of your business handling their personal information. This is about 35 pounds per year.

For the full list of all what you need and how much these essentials cost, watch our short video here.