Be wary of sale and rent back
sell and rent back house companies are at last under the media spotlight, after a long time. Lately there has been lots of activity in the press concentrating on landlords who look to buy house’s and rent them back to the owners.
It has come to light that some bad operators in this market have been putting profits before being fair and honest. For most homeowners who have sold their property and want to rent it back their most important concern is the security of tenure. Many sell and rent back house companies offer only Assured Short hold Tenancies.The reason they do this is that there are few other tenancies which protect their rights as landlords as well. The problem with these tenancies is that once the fixed term is finished the landlord is legally allowed to ask the tenant to leave by issuing a section 21 notice..This obviously leaves the tenant vulnerable to eviction even if they wish to stay in the property. There is currenlty no way around this problem. companies who operate, usually forget to tell the tenants this minor detail..
Sale and Rent Back schemes do offer an important service to those people who want to release equity, escape repossession, or sell quickly to emigrate or move. Rogue operators could just get the tenants out and sell the property on for a fast buck. The better Sell and rent back companies take a longer view and do not intend to sell. For these operators having a tenant who treat the house like they did when they owned who intends to stay for a long time sell and rent back tenants are ideal as they mean few rental voids and maintenance issues. These landlords see their houses as an asset that will go up in value so would like more long term tenants.
Homeowners who are looking at a sell and rent back scheme should be made aware of the dangers and talk in detail with the person who is buying their home. They need to know how their tenancy will be secured. Ethical sell and rent back operators can also provide references from people who have taken up the sell and rent back option.
One company with good ethical standards and solid references is RentBack Direct.Contact them regarding sell and rent back house and you will not be dissapointed.
