## What is the Rent-to-Rent Model?
The rent-to-rent strategy involves renting a property from a landlord and then subletting it to tenants for a profit. This model allows investors to generate passive income without the upfront capital required to purchase a property. When executed correctly, it can provide a reliable cash flow and a scalable portfolio.
### Key Strategies for Success
* Property Selection: Choose properties in high-demand areas, such as urban centers or business districts, that are suitable for corporate or short-term rentals. Look for properties in excellent condition to minimize refurbishment costs.
* Legal Agreements: A robust legal contract with the property owner is paramount. Ensure the agreement explicitly allows for subletting and outlines the terms of maintenance and liability.
* Tenant Screening: Thoroughly vet your sub-tenants, especially for short-term stays, to protect the property and ensure compliance with the original lease agreement.
By focusing on these strategies, you can minimize risk and build a profitable rent-to-rent business.