NRLA boss Ben Beadle has advised would-be investors to avoid ‘too good to be true’ rent-to-rent schemes and called for greater scrutiny and regulation of the sector.

Speaking at the recent Property Investor Show, Beadle warned them not to believe all the rhetoric.

“Whenever there’s a big problem it normally links back to rent-to-rent done badly,” he said.

“If it’s too good to be true it’s probably best to do something else…as it invariably ends in tears and out of pocket.”

Two high profile cases have made headlines in the last month alone. Sam Eustace, boss of guaranteed rent business Kingsman Property Ltd, was handed an 11-year ban for scamming £6.7 million from investors, while high-profile property investor Ben Brand, who was hailed as a rent-to-rent success story, put his company StayBC Ltd into liquidation, owing creditors nearly £1.5 million.

Unsolicited letters

Property Tribes’ Vanessa Warwick said that letters received by landlords looking for customers would almost certainly be from someone fresh off a course with no experience, who was promising to guarantee rent.

She added: “If you check them on Companies House you will almost certainly find their company was set up in the last few months.”

Warwick pointed out that the Advertising Standards Authority had just ruled that sending unsolicited letters to property owners is illegal if the landlords being targeted have opted out of direct mail.

Outrageous

Beadle also objected to rent-to-rent operators using HMO licence lists to target landlords.  

He explained: “It’s an outrageous breach of what the list is there for. HMO schemes are there to raise standards, not to give people a quick route to a customer base.

“I worry about landlord registration – we need to make sure that we’ve got robust control over that data.”

Watch the interview in full.

7 COMMENTS

  1. Thanks for featuring this interview. It really says something that the CEO of the NRLA is speaking out so forcibly about the dangers of rent to rent, and quite rightly too, bearing in mind that three proponents of this so called “no money down” strategy have all gone bust in the first quarter of 2022.

    It just shows that it can’t have been as lucrative as they each claimed when they were marketing training courses and Rent to Rent and Rent to Rent SA deals to their followers. Sam Eustace of Kingsman Property even ended up running a ponzi scheme to be able to pay his “guaranteed rent” obligations to landlords.

    Those thinking of going on expensive Rent to Rent training courses need a reality check and I think the interview between Ben and myself served to do that. Ben’s description of R2R being the industry’s “dirty little secret” was absolutely spot on.

    Thank you to Ben for such important commentary that is hopefully helping create further consumer awareness around this strategy.

  2. Another point that come up in a small circle of PRS LL’s is the comment about ‘data breaches’ :-
    Beadle also objected to rent-to-rent operators using HMO licence lists to target landlords.
    He explained: “It’s an outrageous breach of what the list is there for. HMO schemes are there to raise standards, not to give people a quick route to a customer base.
    “I worry about landlord registration – we need to make sure that we’ve got robust control over that data.”

    So a list of landlords but not of “dodgy, non rent paying, property damaging, rent runners” due to privacy issues seems like lots more conversations needs to be had about this list…. A licence to me like the ones we similarly have to pay each five years in different parts of the country should be national and fee based on a national criteria, then information can be classified to who needs it…councils, local govt, national govt, HSE, enviro depts.

  3. Glad Ben Beadle was not shy to express his concerns.
    Shocking that operators have got away with such awful behaviour for so long and others (or even the same) bad guys can continue to do so.
    I have witnessed numerous occasions whereby rogue ‘rent to rent’ agents have shafted landlords, tenants and even other (honest/decent) agents. Sickens me each time.
    But this is just one of a number of problems which the industry faces. Poor governance, lack of severe punishment, an incentive to to do wrong vs doing right are to blame amongst other things.
    It is really sad that the legit / genuinely good, hard working, honest, compliant HMO agents / R2R specialists have to witness things that tarnish this field, and watch numerous landlords as well as tenants be duped and victimised.
    However – what goes around comes around, in some way, shape or form!

  4. I can’t agree with a fat lot here. I dropped out of the NRLA due to Ben Beadle who seems to say what the government want to hear. Landlords are subject to frauds constantly, law and order does not exist in Britain. You have no real idea who the tenants are, they could have murdered someone, local authorities dump their bad tenants on the private sector, and then use them as a tool to attack landlords.

  5. It is SCUM Councils that are the cause of many issues in the PRS.

    These Councils should be IGNORED.

    Good LL know what to do.

    SCUM Councils fail to enforce the existing extensive legislation already available to them.

    That is their problem not the LL.

    Introducing more duplicate legislation solves NOTHING.

    USELESS SCUM Councils need to enforce existing legislation available to them.

    Councils are pure SCUM the way they treat LL.

    Then they expect LL to assist them with homeless scum.

    Unbelievable!!!

    No wonder LL refuse to assist Councils to discharge their homeless lists.

    I’d rather my teeth pulled than EVER assist a Council!!

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