Rent-to-rent (R2R) involves a company or individual renting a property from the owner at a fixed guaranteed rent, then subletting it at a higher rate. The operator keeps the difference. The landlord gets guaranteed income but must ensure the arrangement is disclosed to their mortgage lender and insurer.

• Must disclose to mortgage lender — most buy-to-let mortgages prohibit subletting
• HMO licensing may be required if let to 5+ people in 2+ households
• Operator takes on landlord responsibilities to sub-tenants
• Guaranteed rent gives owner certainty but usually below market rate
• Landlord remains legally responsible to sub-tenants under Landlord & Tenant Act

Legal reference: Housing Act 2004 (HMO); Landlord & Tenant Act 1985; Renters Rights Act 2025