‘Rent to rent’ is a still a popular business model for landlords despite its many risks. In a rent to rent or ‘guaranteed rent’ arrangement the property owner grants a lease to an individual or a company, usually for around two or three years. That person (referred to in legal jargon as the mesne tenant) then finds sub-tenants who will occupy the property. The owner has no direct contractual relationship with the occupiers of the property, and the mesne tenant makes a profit by charging a higher rent than they are paying, often by granting sub-tenancies on a room by room basis.

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