The Best Strategies for Deal Sourcing in 2025

As the property market continues to evolve, deal sourcers are constantly adapting their strategies to find success. In 2025, several methods have proven effective, each with its unique challenges and opportunities. Here, we explore the leading strategies for property deal sourcing, from traditional Buy to Let (BTL) to innovative Rent to Rent Serviced Accommodation (R2RSA).

Buy to Let (BTL)

BTL remains attractive due to the potential for steady rental income and high sourcing fees. However, it presents significant hurdles for new sourcers. The complexity of these deals and the substantial budget required from investors make it challenging for those just starting. New sourcers must navigate financial assessments, property management, and market fluctuations, which can be daunting without adequate experience or guidance.

House of Multiple Occupation (HMO)

HMO conversions offer potentially higher returns but come with their own set of challenges, surpassing even BTL in complexity. The investment required is substantial, as properties must be converted to accommodate multiple tenants. This involves extensive legal work, planning permissions, and obtaining HMO permits. Additionally, maintaining high occupancy rates necessitates a reliable management company, adding to the operational complexities.

Social Housing

In 2024, social housing saw a significant stigma due to high-profile failures like Citygate, which struggled with cash flow issues. This has made investors wary, as the model depends heavily on consistent funding and efficient management to remain viable. Although from an acquisition and sales perspective this remains to be the top of the list, the stigma associated with social housing opposes the biggest challenge in 2025.

Rent to Rent Serviced Accommodation (R2RSA)

Among the strategies, R2RSA stands out in 2025. This model, essentially Airbnb arbitrage, involves renting a property from a landlord and then subletting it as short-term accommodation. The sourcing fees for R2RSA can still exceed £3,000, and the investment required is significantly lower than in BTL or HMO, making it an attractive option for those looking to generate quick returns. Additionally, the potential cash flow from R2RSA can be exceptionally high. The primary challenge lies in finding a management company that charges reasonable fees, as many can be as high as 15% or more, which can impact profitability.

Onyx Bureau’s Success with R2RSA

Onyx Bureau has demonstrated significant success with this model, taking a client from £0 to over £75,000 per month in just 65 days.
Read case studies to see how we achieved these remarkable results through strategic sourcing and effective management partnerships.

Conclusion

In conclusion, while each property sourcing strategy offers distinct benefits, they also come with specific challenges that must be navigated carefully. Whether you are drawn to the traditional BTL, the more complex HMO, or the innovative R2RSA, understanding the nuances of each will be key to success in the 2025 market.

Should you want to want to eliminate the unpredictability and inconsistency of finding new property investors, or landlords willing to use their property for company let, speak with Onyx Bureau to explore the performance based partnership opportunities.

This eliminates upfront costs whilst being significantly more cost efficient than co-sourcing.