Rent to rent or guaranteed rent - guide for tenants

Tenant guide

Rent to rent or guaranteed rent is where a person or company rents a property from the owner landlord, usually under a commercial arrangement, and then lets that property to tenants. In return, the owner landlord receives a fixed rent.

If you rent a home through this kind of arrangement, the person or company you deal with day to day may not be the legal owner of the property. They may be the landlord you rent from under your tenancy agreement.

The Renters’ Rights Act changes important parts of the legal framework for private renting in England. If you are renting through a rent to rent arrangement, it is important to understand what these changes mean for you.

What to check before you rent

Before you agree to move in, make sure the person or company renting the property to you has the right to do so.

You should check:

• who is named as landlord on your agreement
• whether the person or company has authority to let the property
• who you should pay rent to
• who you should contact for repairs and maintenance
• whether any deposit you pay will be protected correctly
• whether the property appears safe, well maintained and suitable to live in

If you are renting a room in a shared property, rent to rent arrangements are more common, so it is worth checking these points carefully.

Your tenancy under the Renters’ Rights Act

The Renters’ Rights Act changes the tenancy system in England.

For most private tenants, fixed term assured tenancies are being abolished and tenancies will move to a periodic system. This means your tenancy does not simply end because a fixed term has expired.

Instead, you can usually stay in the property until:

• you decide to leave and give notice, or
• your landlord uses a valid legal ground for possession

What this means in a rent to rent arrangement

This is an important point. In a rent to rent arrangement, the agreement between the owner landlord and the rent to rent operator is separate from your tenancy.

That means:

• your tenancy rights do not automatically end just because the commercial arrangement above you changes
• the person renting to you must still follow the law if they want possession
• you should not assume you have to leave straight away because of a dispute between the owner landlord and the rent to rent operator

If you are told that the arrangement has ended and you must leave, get advice straight away. The position can be complex, but proper legal steps still need to be followed.

Your agreement

Your agreement should clearly show who your landlord is.

Depending on the property and how it is let, you may have:

• a tenancy agreement, or
• a licence agreement in some shared housing situations

Read the agreement carefully before signing. You should be given time to review it properly.

Check:

• the landlord’s name
• the property address
• the rent amount
• when rent is due
• who is responsible for repairs
• what type of agreement you are signing
• any rules on notice, bills or shared areas

If anything is unclear, ask for an explanation before you sign.

Deposit protection

If you pay a tenancy deposit, it must still be protected where the law requires it.

Your landlord must protect your deposit in a government authorised tenancy deposit scheme, such as mydeposits, within the legal deadline. You should also be given the prescribed information that explains where your deposit is protected and how it will be dealt with at the end of the tenancy.

This remains an important protection under the Renters’ Rights Act.

Why this matters

Deposit protection helps make sure your money is handled properly and gives you access to a formal dispute process if there is disagreement at the end of the tenancy.

If your landlord does not protect your deposit properly, there can be consequences for them, including:

• financial penalties ordered by the court
• restrictions on using certain possession routes
• formal disputes and enforcement action

If you are not sure whether your deposit has been protected, ask for the scheme details in writing.

Private Rented Sector Landlord Ombudsman

The Renters’ Rights Act introduces a new Private Rented Sector Landlord Ombudsman.

This gives tenants a new route to raise complaints about their landlord’s actions, inaction or behaviour. The service is designed to provide fair, impartial and binding decisions without every dispute needing to go to court.

The ombudsman may be able to require a landlord to:

• apologise
• provide information
• take action to put things right
• pay compensation

How tenants can use it

If you have a complaint, you should normally raise it with your landlord first and give them a chance to respond.

If the issue is not resolved, you may be able to take the complaint to the landlord ombudsman. This could be useful where the problem involves:

• poor complaint handling
• failure to deal with repairs properly
• unreasonable behaviour
• poor communication
• service failures during the tenancy

In rent to rent cases, it is especially important to know who your landlord is in law, because that is likely to affect who the complaint should be made against.

Property standards and safe housing

Decent Homes Standard

The Renters’ Rights Act applies the Decent Homes Standard to the private rented sector.

This is intended to help make sure that privately rented homes are safe, in a reasonable state of repair and provide decent living conditions. This includes homes let through rent to rent arrangements.

For tenants, this means stronger expectations that rented homes should:

• be safe to live in
• be free from serious disrepair
• provide basic standards of comfort
• be managed properly

If a property is in poor condition, report the issue in writing and keep a copy.

Awaab’s Law

Awaab’s Law is being extended to the private rented sector.

This will introduce legal expectations for landlords to investigate and deal with serious hazards, such as damp and mould, within set timeframes once the detailed rules are brought into force.

This is an important change for tenants, especially in shared homes where problems can affect several people at once.

If you report damp, mould or another serious hazard, your landlord should not ignore it or delay action without good reason.

What tenants should do

If you spot a serious hazard:

• report it as soon as possible in writing
• keep copies of messages and emails
• take dated photographs if helpful
• record when the problem started
• keep notes of any response or lack of response

This will help if you need to escalate the issue later.

Safety checks and legal requirements

You should still make sure the property has the right safety documents and checks in place where required.

This may include:

• a valid Gas Safety Certificate
• electrical safety checks
• smoke alarms
• carbon monoxide alarms where required

You should also read the Government's How to rent guide if it applies to your tenancy.

Subletting without consent

Sometimes a property is sublet without the owner landlord’s knowledge or consent. This can happen where an agent, company or even another tenant lets out rooms without permission.

If this happens, it can create serious problems for the people living there.

As a tenant, this may leave you at risk of disputes over who your landlord is and whether the arrangement is lawful. Always try to make sure the person or company renting to you has the right to do so.

Warning signs can include:

• reluctance to give you a written agreement
• unclear answers about who owns the property
• pressure to pay cash without paperwork
• refusal to provide deposit protection details
• confusion about who deals with repairs

Enforcement and penalties

The Renters’ Rights Act strengthens enforcement powers for local councils.

Councils will have wider powers to investigate breaches of the rules and take action where landlords fail to comply. This includes action relating to:

• poor property conditions
• failure to join required schemes
• unlawful practices
• failure to meet new legal duties

Penalties for non compliance can include:

• civil penalties of up to £7,000 for initial or less serious breaches
• civil penalties of up to £40,000 for serious, repeated or ongoing breaches
• criminal prosecution in some cases

This stronger framework is designed to improve standards and give tenants better protection.

What to do if something goes wrong

If you have a problem in a rent to rent property, take these steps:

1. Check your agreement and confirm who your landlord is.
2. Report the issue in writing and keep copies.
3. Give the landlord a fair chance to respond.
4. Keep records of payments, messages and photographs.
5. Check whether your deposit is protected.
6. Contact your local council if there are serious safety or housing standard concerns.
7. Consider using the Private Rented Sector Landlord Ombudsman if your complaint is not resolved.

Complaints and redress

If the person managing your tenancy is a member of a consumer redress scheme such as Property Redress, that may still be relevant in some situations.

However, the new landlord ombudsman adds another route for tenants where the complaint is about the landlord’s conduct or failure to act.

In some rent to rent cases, the right route will depend on who is responsible for the problem. That can be the rent to rent operator, the owner landlord, or both.

If a complaint is not resolved, you may also need independent legal advice.

Final point

Rent to rent arrangements can be lawful, but they can also be more complicated than a standard tenancy. The Renters’ Rights Act gives tenants stronger protections on complaints, housing standards and landlord accountability.

Before you rent, check who your landlord is. During the tenancy, keep records and report issues early. If problems are not put right, use the protections available to you.

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