Rent-to-rent: who is responsible for repairs?

Rent-to-rent (sometimes called guaranteed rent) arrangements have become common in the private rented sector. Under these arrangements, a company or individual rents a property from the owner and then sublets it to tenants. This creates an extra layer in the tenancy chain. If your home is in disrepair, you may be uncertain whether your immediate landlord or the property owner is liable. We set out where you stand.

What is rent-to-rent?

In a rent-to-rent arrangement:

• The property owner (freeholder or long leaseholder) lets the property to an intermediary, usually a company or individual
• The intermediary then sublets it to you (the occupying tenant)
• You pay rent to the intermediary, not the property owner

The intermediary is your landlord in the legal sense, they are the party to your tenancy agreement. The property owner is the landlord's landlord.

Who is responsible for repairs?

Your immediate landlord, the intermediary you have a tenancy agreement with, owes you the repairing duties under your tenancy. Section 11 of the Landlord and Tenant Act 1985 applies between you and your immediate landlord (the party who let the property to you). This means:

• Your immediate landlord (the rent-to-rent company) is legally responsible for keeping the structure, exterior, and installations in repair
• You report disrepair to them, not to the property owner
• If they fail to carry out repairs, the claim runs against them

Can you claim against the property owner?

In some circumstances, yes, but this is more complex. If the property owner:

• Knew about the disrepair and allowed it to continue
• Was aware that the intermediary was subletting and failed to ensure repairs were done
• Has a duty of care in their own right (for example, they retain control over the structure)

...then there may be liability in negligence against the property owner as well. However, the primary legal route is against your immediate landlord.

What if the rent-to-rent company has dissolved or gone insolvent?

This is a real risk in rent-to-rent arrangements. If the intermediary company closes, the rental chain breaks down. In this situation:

• See What happens to a disrepair claim if a landlord goes insolvent?
• Check whether the property owner has resumed their role as landlord, if the subtenancy has ended and you are now dealing directly with the owner, the duty may fall on them
• Legal advice is important in this situation

What does your tenancy agreement say?

Check your tenancy agreement carefully:

• Does it name the rent-to-rent company as landlord, or does it name the property owner?
• Are there any clauses about who is responsible for repairs?
• Is there any reference to the head lease or the owner's obligations?

If your agreement names the rent-to-rent company as landlord and gives them management responsibility, the duty to repair sits with them.

Reporting disrepair in a rent-to-rent home

Report in writing to your immediate landlord (the rent-to-rent company) in the first instance. If they fail to respond:

• Escalate to the property owner if you can identify them (Land Registry title checks cost a small fee)
• Contact the council's environmental health team, the council can serve notices on whoever has control of the property
• Seek legal advice on whether a claim runs against the intermediary, the owner, or both

Warning signs to look out for

Some rent-to-rent companies operate with very thin margins and are unable or unwilling to carry out repairs. Signs of a problematic rent-to-rent arrangement include:

• Difficulty finding a real person or address for the landlord company
• The company is very new, has minimal accounts, or changes frequently
• Promises of repairs that never materialise
• Pressure not to report problems to the council

If your landlord is operating through a company, you have a right to know the company's name, registered address, and registered number, this should be in your tenancy agreement.

When should I contact Support for Tenants?

If your home is in disrepair and your landlord is a rent-to-rent company, call us on 0800 030 4669. We can advise on whether a claim is open and who to pursue.

No upfront cost. You only pay if you win, and the fee comes out of the compensation, not your pocket. If you don't win, you pay nothing.

Sources

• Section 11, Landlord and Tenant Act 1985 (legislation.gov.uk)

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