Be careful of sell and rent back rogues
It has come to light that some cow boy operators in this market have been putting profits before being fair and ethical. For most people that have sold their property and want to rent it back their most pressing concern is the security of tenure. Many rent back companies give only Assured Short hold Tenancies.The reason they do this is that there are no 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 will leave 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..
Rent Back schemes do offer an important service to those people who want to release equity, escape financial pressures, or sell quickly to emigrate or move. Consumer groups are however concerned that cow boy sell and rent back operators wish to get the tenants out as fast as possible to sell the property to make quick profits.. The better Rent Back operators take a longer view and never 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 is ideal. These landlords see their houses as an asset that will grow in value over the long term and as such are happy to commit to tenants who wish to stay.
Homeowners who are looking at a sell and rent back scheme should be made aware of the pitfalls and talk it through with the person who is buying their property. Homeowners should ask for references from previous clients who have sold and rented back their homes.
A Company with good references and solid ethical standards is RentBack Direct.Contact them regarding rent back and you will not be dissapointed.
