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

Rent-to-rent deals run common in private renting. A company or person rents a home from the owner, promising the owner a fixed rent, then rents it out again to tenants. That adds a link to the chain. A home in disrepair leaves you wondering who carries the blame: your own landlord, or the owner? Here is where you stand.

What is rent-to-rent?

In a rent-to-rent deal:

• The owner, freeholder or long leaseholder, lets the home to a middle party, usually a company
• The middle party rents it out again to you, the tenant living there
• Your rent goes to the middle party, never the owner

In law, the middle party is your landlord: the name on your tenancy agreement. The owner is your landlord's landlord.

Who is responsible for repairs?

Your own landlord, the middle party on your tenancy agreement, carries the repair duties. Section 11 of the Landlord and Tenant Act 1985 runs between you and them. That means:

• The rent-to-rent company must by law keep the structure, the outside, and the installations in repair
• Disrepair reports go to them, not the owner
• Repairs left undone mean the claim runs against them

Can you claim against the property owner?

Sometimes, yes. But it runs harder. A negligence claim against the owner may exist where they:

• Knew of the disrepair and let it carry on
• Knew the middle party was subletting and never made sure repairs happened
• Carry a duty of care of their own, say through still controlling the structure

Even so, the main route runs against your own landlord.

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

A real risk in these deals. The middle company closing breaks the rental chain. Where that happens:

• See What happens to a disrepair claim if a landlord goes insolvent?
• Check whether the owner has stepped back in as landlord. A sub-tenancy ended, with you dealing straight with the owner, may put the duty on them
• Legal advice matters here

What does your tenancy agreement say?

Read your tenancy agreement with care:

• Does it name the rent-to-rent company as landlord, or the owner?
• Do clauses say who must do repairs?
• Does it mention the head lease, or the owner's duties?

An agreement naming the rent-to-rent company as landlord, with management duties, puts the repair duty with them.

Reporting disrepair in a rent-to-rent home

First, report in writing to your own landlord, the rent-to-rent company. No reply?

• Go to the owner, where you can find them. Land Registry title checks cost a small fee
• Contact the council's environmental health team. Notices can land on whoever controls the home
• Get legal advice on whether a claim runs against the middle party, the owner, or both

Warning signs to look out for

Some rent-to-rent companies run on very thin margins, unable or unwilling to repair. Signs of trouble:

• No real person or address for the landlord company can be found
• The company runs very new, thin in its accounts, or changes often
• Promised repairs never happen
• They push you away from reporting to the council

A landlord working through a company owes you its name, registered address, and registered number. Your tenancy agreement should hold them.

When should I contact Support for Tenants?

A home in disrepair, with a rent-to-rent company as landlord? Call us on 0800 030 4669. We can say whether a claim may stand, and who to go after.

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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• Can I claim against a private landlord?
• Can I claim if I am a lodger?
• Subletting without your landlord's permission
• Anonymous or offshore landlord, I cannot find them