How much can you make from rent-to-rent?

Profit per unit is the difference between what you charge tenants and your fixed costs (rent to the landlord, bills, voids and management). A single R2R unit typically nets a few hundred pounds a month; HMO R2R can net more but carries higher setup and compliance costs. Model your own numbers above.

Is rent-to-rent legal in the UK?

Yes, when done correctly — with the landlord’s written permission to sub-let, the right management or company-let agreement, mortgage and freeholder consent, and the correct licensing (especially for HMOs). Doing it without consent or a licence is where R2R gets people into trouble.

What are the startup costs?

Typically a deposit, the first month’s rent, light furnishing, any compliance/safety certificates and a sourcing fee if you bought the deal. Enter your total setup capital above to see the payback period.

How much can you make from rent-to-rent?

Profit per unit is the difference between what you charge tenants and your fixed costs (rent to the landlord, bills, voids and management). A single R2R unit typically nets a few hundred pounds a month; HMO R2R can net more but carries higher setup and compliance costs. Model your own numbers above.

Is rent-to-rent legal in the UK?

Yes, when done correctly — with the landlord’s written permission to sub-let, the right management or company-let agreement, mortgage and freeholder consent, and the correct licensing (especially for HMOs). Doing it without consent or a licence is where R2R gets people into trouble.

What are the startup costs?

Typically a deposit, the first month’s rent, light furnishing, any compliance/safety certificates and a sourcing fee if you bought the deal. Enter your total setup capital above to see the payback period.

Rent-to-Rent Calculator

Work out the real profit on a rent-to-rent deal — the rent you pay the landlord, your setup capital, bills and voids against your rental income — with monthly profit, payback and a DealIQ verdict.

Strategy

Market value

Monthly rent (total)

Sourcing fee

Refurb / furniture

Bills (pcm)

Rent to landlord (pcm)

Setup capital

Deposit %

LTV %

Rate %

Management %

Voids/maint. %

Additional property (5% SDLT surcharge)Tax region

Stress test

If things move against you

The same cashflow maths, re-run at a higher rate, lower rent and a void month — pure arithmetic, no forecast.

Scenario	Cashflow / mo	ROI
Today	£440	40.6%
Rate +1%	£440	40.6%
Rent −5%	£352	32.5%
1-month void	£293	27.1%

Self-managed cashflow on the figures you entered. Other running costs are held fixed in each scenario, so these are conservative — a guide, not a forecast.

Full breakdown

ROI (self)

40.6%

ROI (managed)

21.1%

Cashflow (self, pcm)

£440

All-in capital

£13,000

Individual BTL landlords: mortgage interest relief is restricted (Section 24) — check your own tax position. Informational only — not financial advice.

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This calculator is for guidance only and does not constitute financial, tax, mortgage or investment advice. Figures are estimates — always seek professional advice and verify costs before committing to a purchase.

Rent-to-rent — common questions

How much can you make from rent-to-rent?: Profit per unit is the difference between what you charge tenants and your fixed costs (rent to the landlord, bills, voids and management). A single R2R unit typically nets a few hundred pounds a month; HMO R2R can net more but carries higher setup and compliance costs. Model your own numbers above.
Is rent-to-rent legal in the UK?: Yes, when done correctly — with the landlord’s written permission to sub-let, the right management or company-let agreement, mortgage and freeholder consent, and the correct licensing (especially for HMOs). Doing it without consent or a licence is where R2R gets people into trouble.
What are the startup costs?: Typically a deposit, the first month’s rent, light furnishing, any compliance/safety certificates and a sourcing fee if you bought the deal. Enter your total setup capital above to see the payback period.

Rent-to-Rent Calculator

If things move against you

Rent-to-rent — common questions

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