MLWTS is a variation or sub strategy of HMO or Multi-Letting. The benefit of renting properties out by the room rather than as a ‘single-let’ is more income. The drawbacks are higher prices to buy the properties, higher deposits needed, lots of often regulated licensing that can sometimes cost £10,000’s and more intense management.
Wouldn’t it be great if you could combine the high cashflow that you get from HMO’s, yet reduce all the high buying costs, large deposits and expensive regulations? This is what MLWTS™ achieves. Although MLWTS™ is trademarked and relatively new, the strategy upon which it is modelled is not. Corporate letting is when a ‘corporation’ rents out a property and then sub-lets it to their employees.
It’s been done for many years, and is an effective solution from companies having to buy 100’s or 1,000’s of properties.
Buying a property and then using it to let out to their key employees is just too much hassle. Renting property from private landlords for the use of their employees is more flexible and meets the company’s short-term needs.
Now, the Multi Let Without The Sweat™ strategy takes this concept into the private arena. You can utilise the same strategy, but not for your corporate employees, but as a profit strategy to be the middle-man between the Landlord and the tenants, getting all the income from multiple tenants and only having to pay the rent to your Landlord and not the £10,000’s in deposits, regulations, refurbs and other buying costs.
How MLWTS works: Step 1. You rent a property on a single let basis from a Landlord Step 2. You get permission to re-rent [sub let] Step 3. You rent out the property by the room [turn one let into 4-6] Step 4. You receive multiple rents, pay your single let rent [and costs] and pocket the margin. So why would a landlord be open to this strategy? Why wouldn’t they do it themselves if it is that good and that easy? Why do they need you?
You are of course smart to think these things. Any Landlord is looking for certain safety nets when renting their properties; your Landlord is no different from any other:
-No empty periods
-No missed or late payments
-No tenant queries or management
-Guaranteed start date
-Same day rent payments
-Tenants vetted & carefully chosen
-Maintenance service included
-Internal condition guaranteed
If the property was vacant or the tenant failed to pay the rent on time [or at all] your Landlord would still get paid, by you. The rent would arrive in their bank account each month for the duration of the contract. Because of your knowledge and execution of this strategy you’re going to offer this security for as long as you can, right?
In addition to the security of a single let, many of these Landlords are ‘accidental.’ They never intended to be a Landlord, but they’ve had to rent properties they wanted to sell, but the crash and economy has prevented them from doing so. Can’t get finance. Value has dropped. No other choice. If you don’t know what you’re doing, being a Landlord, even with just one or two properties, can be a big headache. Accidentals Landlords have a pain: you solve it.
Perhaps they have also tried HMO’ing. They hated it. They tried to self manage, they got too involved, they didn’t vet the tenants properly, put the wrong types of tenants together, in the wrong location, to the wrong living standard. Never again, I’ll stick with single let thanks. You want to HMO this property? Good luck. Their pain is your solution and opportunity.
You get all the benefits of HMO’s [cashflow], with virtually no input or set up costs.
This new age, innovative strategy doesn’t need a mortgage or a 25% deposit, there is no high refurbishment outlay, no planning permission if you follow the MLWTS™ model as you’ll be taking over established HMO’s, and you will be making on average £535 per property net per calendar month, and up to £910 pcm on each property.
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