Rent To Rent: Forget the Passive Income Dream

Scroll through social media, and you’ll see it everywhere—shiny ads promising financial freedom through Houses in Multiple Occupation (HMOs). The pitch? A rent-to-rent model where you lease a property, sublet the rooms individually, and pocket the difference. No mortgage, no deposit, no worries. Easy money, right?

Wrong.

While HMOs can be a profitable venture, the dream sold by many property courses often glosses over the harsh realities. Let’s break down the gritty truth of what it actually takes to run an HMO, especially when you don’t own the property.

1. You Don’t Have Control—But You Have All the Responsibility

One of the biggest issues with the rent-to-rent model is the lack of ownership. You don’t control the asset, which means you don’t get the final say on essential upgrades or structural changes. Yet, you’re still responsible for maintenance, compliance, and tenant management.

Picture this: A tenant complains about a persistent damp issue. You report it to the landlord, but they drag their feet on approving costly repairs. Meanwhile, your tenants are unhappy, potential fines from the council loom, and you’re stuck in the middle. When you own the property, you can take decisive action. When you don’t, you’re at the mercy of someone else’s budget and priorities.

2. Maintenance Will Eat Your Profits Alive

These property courses love to show you the income side—“Earn £1,500+ a month from just one property!”—but they conveniently forget the expenses. HMOs require constant upkeep. More tenants mean more wear and tear.

Boilers break down, leaks appear overnight, washing machines get overworked, and let’s not forget the endless cycle of tenant damages. If you’re in a rent-to-rent setup, every repair eats directly into your profits. And when the landlord refuses to pay for fundamental improvements, you’re stuck in a cycle of patch-up jobs and tenant complaints.

3. Compliance Nightmares

HMOs aren’t your standard buy-to-let. There are licensing requirements, fire safety regulations, and strict council standards. Keeping up with them isn’t optional—it’s the law.

A property that isn’t up to scratch can lead to hefty fines or even closure. And guess what? The responsibility of making sure it’s compliant is on you. Again, if you don’t own the asset, you can’t force the landlord to make the necessary upgrades, but the consequences of non-compliance still fall on your shoulders.

4. Tenants Aren’t Always Easy

Managing an HMO means dealing with multiple tenants from different backgrounds, lifestyles, and levels of respect for the property. Conflicts between housemates? You’re the referee. Late-night noise complaints? Your problem. Someone stops paying rent? You’re chasing it up, covering voids, and hoping your landlord isn’t breathing down your neck.

Many rent-to-rent “gurus” claim they have the perfect system for managing tenants, but let’s be real—people are unpredictable. If you’re not prepared to deal with constant phone calls, disputes, and evictions, this isn’t the strategy for you.

The Myth of Passive Income

Rent-to-rent, like any business, requires work. It’s far from passive. You’re running a high-maintenance operation with multiple moving parts. Sure, you can build systems and delegate tasks, but at the end of the day, the responsibility lands on you.

The reality is, nothing in business is truly passive. Whether it’s HMOs, e-commerce, or stocks, success requires effort, resilience, and a willingness to deal with challenges. If someone is selling you a dream of effortless wealth, they’re selling you a lie.

So before you buy into another get-rich-quick course, ask yourself—are you prepared for the hard work that comes with it? Because if you think HMO management is a ticket to easy money, you’re in for a rude awakening. Why We Know What We’re Talking About

We’re not just talking theory—we’ve been in the trenches. Over the past 10 years, we’ve leased 12 rent-to-rent properties all of which have now been handed back. Yes, we’ve made cash flow, but we’ve also faced constant battles with managing agents and landlords refusing to carry out essential repairs. We’ve dealt with mismanagement of communal bins, endless tenant issues, and even drug users taking over car parks for two years because the landlord refused to fix broken electric gates.

The bottom line? There is money to be made, but it comes with a price—constant stress, challenges, and hard work. If you’re still dreaming of passive income, think again. If you want to learn how to invest in HMO's properly for FREE visit: www.houseshareheroes.co.uk/free