Back To Back Leasing - Learn the No. 1 Cashflow Generating Strategy for 2025 with Jay Chauhan
Last updated: 31 Jan 2025
Meet Jay Chauhan
Jay Chauhan, a seasoned property strategist and investor, has spent over a decade mastering multiple property investment strategies. From buy-to-let and HMOs to development projects, Jay’s extensive experience has shaped his ability to adapt to market changes and uncover profitable opportunities.
In this Deal Finder’s Corner episode, Jay introduces the innovative and scalable strategy of back-to-back leasing. This blueprint is designed to empower property investors to maximise cash flow, navigate challenges, and streamline operations in the competitive property market.
What is Back-to-Back Leasing?
Back-to-back leasing is a property strategy where investors lease properties from landlords and then sublease them to third-party providers, such as housing associations, local councils, or care organisations. By acting as the intermediary, investors secure consistent cash flow while minimising operational risks.
This strategy stands out because it eliminates common challenges such as tenant voids, maintenance costs, and utility expenses. Instead, investors manage a corporate body as the tenant, creating a hands-off approach to property investing.
Why Back-to-Back Leasing is Perfect for 2025?
The property market is evolving, and back-to-back leasing is emerging as one of the most lucrative strategies. Here’s why it’s gaining traction:
Guaranteed Cash Flow: Corporate tenants ensure a steady income, even if units within the property are unoccupied.
Reduced Costs: With no tenant management, utility expenses, or internal maintenance responsibilities, investors can focus on scaling.
Alignment with Social Needs: This strategy supports social housing initiatives, catering to councils and organisations seeking long-term solutions.
Avoiding Renters’ Reform Challenges: With upcoming changes like the abolition of Section 21 evictions, back-to-back leasing offers a compliant and flexible alternative.
“The key to success in property investing is understanding your area and using the right tools to stay ahead.”
How to get started with Back-to-Back Leasing?
Step 1: Identify the right landlords
Jay emphasises targeting experienced landlords with “tired stock”—properties that may require updates but still hold potential. These landlords often face challenges such as voids or maintenance issues, making them ideal candidates for back-to-back leasing.
Step 2: Build relationships with providers
Social housing providers, charities, and care organisations are key partners in this strategy. Jay suggests:
Searching for providers via Google and local council websites.
Networking with brokers to expedite the process.
Leveraging property software like Property Filter to locate suitable properties and providers.
Step 3: Structure your contracts
To protect all parties, create agreements that mirror each other. Work with a solicitor to ensure both the lease with the landlord and the sublease with the provider are aligned.
“Don’t underestimate the importance of thorough due diligence. Vet providers as rigorously as you would vet private tenants,” Jay advises.
Real-Life success stories
Case Study 1: Transforming a tired HMO
A landlord struggling with an outdated HMO partnered with Jay to implement the back-to-back leasing model. Jay facilitated minor compliance upgrades and secured a long-term lease with a local housing association, resulting in:
Zero voids.
No maintenance responsibilities.
Steady income over five years.
Case Study 2: A portfolio of opportunity
After reconnecting with a landlord, Jay transformed four properties into high-performing assets under this model. By negotiating rent-free periods and coordinating upgrades, the properties were leased to a care provider, generating consistent cash flow.
Top tips for Back-to-Back Leasing success
Vet Providers: Conduct detailed checks to ensure reliability.
Stick to Your Rules: Define your profit margins and partner criteria, and adhere to them.
Educate Landlords: Highlight the benefits of this strategy compared to traditional letting methods, such as reduced risks and compliance with evolving legislation.
How Property Filter empowers Back-to-Back Leasing?
To maximise success, investors need reliable tools to find deals and manage processes efficiently. Property Filter’s advanced tools sort properties by motivation indicators, helping investors secure off-market deals with ease. Access free resources, case studies, and weekly calls through Property Filter to enhance your strategy. Start your Free Trial now.
Conclusion: Ready to scale your property career?
Back-to-back leasing is a powerful strategy for investors seeking consistent cash flow and scalable opportunities. By leveraging tools like Property Filter and following Jay’s actionable blueprint, you can position yourself for long-term success.
Property investing doesn’t have to be complicated. Take the first step today and explore how back-to-back leasing can transform your approach.
What should I do next?
Visit Jay Chauhan’s website for more insights.
Watch the full episode on YouTube: Unlock Massive Cash Flow with Back-to-Back Leasing.
