How to Find a Rent-to-Rent in London With a Full Figure!!
After being evicted from The Eviction 2020, Endrit proceeded to secure two blocks of flats on a commercial building on Chiswick High Road, London on a rent-to-rent basis. Endrit thought himself the strongest contestant on the show, and I’ll admit he may have been right. Once he rents out the entire property, he will be well on his way to making a profit of around £1,900 a month.
So how did he achieve this?
I caught up with Endrit just as he was parting with a new tenant that paid a security deposit of £150 for one of the rooms. And as we made our way to the apartments, he revealed he had already rented out four rooms and only four were vacant. However, going by the feedback he was getting, he was confident the remaining four would have occupants within a few days.
Endrit first showed me the kitchen area of the first apartment. And its while here, I learned that it only took him a week and two days after refurbishing the premises to get his first four tenants. Next, he showed me the smallest bedroom, which he’s renting out for £600 a month. Where the room lacks in space, Endrid ensures it compensates with chic decor that features life-like plants.
Among the ways Endrit managed to save some money when marketing the apartments was buying only two bedding sets. So, he used the same bedding to dress the beds when taking photos for advertisement purposes. He then made sure each tenant knew beforehand to bring bedding when moving in. This spares him the cost and hassle of buying new bedding each time a tenant moves out. Brilliant!
I didn’t get to see the first apartment’s ensuite room as a tenant had already moved in. He/she had acquired the room at £950 a month. As we make our way to the rest of the apartment, I am curious to know how much money Endrit spent on the renovations. “A total of £4,000… that’s two flats… so two thousand each,” he reveals. So with a profit of around £1,900 a month, he’ll make that money within two months at least.
Figure Breakdown of The First Apartment
- Renovations: £2,000
- Ensuite Room Rent: £950
- Room 2 Rent: £700
- Room 3 Rent: £650
- Room 4 Rent: £600
- Monthly Profit (estimate): £800
We make our way to the top apartment, where the smallest bedroom is priced at £650 a month. Endrit expects the room to be occupied within a few days owing to the high demand. The next room he showed me was the room a tenant secured just before our interview at £700 per month.
The room like the rest has new furniture like beds and chests, chattels like lampshades and curtains, among other furnishings. So how could Endrit afford all these? As he explains it, he had saved up about £2,000, which he used to pay the deposits. His father then loaned him the rest and promised to provide further financial assistance if the rent-to-rent investment panned out.
The ensuite room of the top apartment is our next stop. Endrit tells me he has already rented it out for £900 monthly! So while the rent in London may be high, he still manages to rent out the rooms for even higher, making him a decent profit. What’s more, he gets 10 to 15 messages a day inquiring about the rooms. And this is while we’re in the middle of a lockdown, imagine that.
To reach many people, Endrit has placed multiple ads in Chiswick and surrounding areas like Acton. “Sounds almost as spammy as the way you got on The Eviction,” I tease him. The ensuite room’s selling point is no doubt the bathroom, which the landlord had renovated for £4,000. Speaking of the property owners, how did Endrit secure this lucrative deal with them?
As he tells it, he first called the landlady and scheduled a viewing. But upon meeting, the landlord and landlady, who are in their 70s or 80s, were initially a bit sceptical of the 21-year-old. Endrit explained what he hoped to achieve with their property in a way they could easily understand. And to sweeten the pot, he offered them a better deal than the competitors and introduced his parents to them to help build trust.
Figure Breakdown of The Second Apartment
- Renovations: £2,000
- Ensuite Room Rent: £900
- Room 2 Rent: £700
- Room 3 Rent: £650
- Room 4 Rent: £???
- Monthly Profit (estimate): £950
In a nutshell, Endrit pays the landlord £3,700 for both apartments. He then rents out eight rooms for a profit of approximately £1,750 a month. And how does he justify the rents he charges? Well, the apartment building is in Chiswick Park, which is a 3-minute walk from the station. Moreover, it’s on a High Street, it’s just a minute away from Turnham Green park, and there’s a Sainsbury’s Superstore two minutes away.
As my interview with Endrit nears its end, he receives a phone call from a potential tenant. They decide he should first send her photos of the vacant rooms and then get back in touch later. “You’ve got people wanting to move in left, right, and center,” I say. “Yeah all the time,” he agrees. These are Endrit’s first two rent-to-rents, and I wanted to know what drove him to secure them.
When he got evicted from The Eviction, Endrit felt he needed to prove he was indeed the strongest link. However, right off the bat, agents kept rejecting his rent-to-rent proposals. So he decided to try the direct-to-vendor approach they were using to acquire lease properties in The Eviction. He went directly to the landlords and only then did he acquire properties on a rent-to-rent agreement.
It gets better. Endrit also passed on the training I gave him to his brother, including finding negative equity deals. And in a matter of just seven calls, they managed to secure a lease option agreement. The brother already has a memorandum signed with the landlord. So what’s next for this former contestant of The Eviction?
“I’ve got a target to hit… I’m going to have 22 rent-to-rents by the end of this year.”
And with eight properties already lined up, I trust Endrit will be making an appearance on Winners On a Wednesday soon. You too are just a Property Investors Crash Course away from being on Winners On a Wednesday. But don’t take my word for it. Endrit, who’s been on the crash course twice, had this to say.
“I learned a lot about HMOs back then when I came to the crash course and networking as well. You meet all sorts of people doing the same type of business as you’re doing… sourcing, HMOs, investment. You can find loads of business partners… it is definitely worth going to…”
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