subject: Proper Technique In Renting Your Sold Home [print this page] The "sell and rent" practice has been around the corner even in earlier years due to the fact that most home owners are going into foreclosure. As a matter of fact, this scheme has been popular around 2006 using the concept of homeowner's protection. Individuals or families facing financial challenges found this beneficial in their current situation since instead of losing property, they can just work with a property investor to sell their homes but at the same time will allow them to rent the said property.
After a year, sell and rent back concept evolved thereby being more rewarding to homeowners. This is because homeowners do not want to lose the money equals to their home equity. The modification of the scheme simply focuses on a very significant equity in the home. Investors agreed to the new terms of purchasing the house and allow it to be rented back to original homeowners. However, once the finances become more stable, the said property can be bought back. That is what makes it beneficial to homeowners letting them retain the home equity.
Even after so much consideration, there are still issues that can be possibly encountered during the process. To prevent it, refer to the below information.
Payment of Fees
Buyers should be responsible with all the fees associated with the sell and rent back scheme. Some of the fees are paid during inspection, to the solicitor, during the survey and other add ones. A homeowner must carefully identify and understand each thing that he or she is paying. With this, there will be nothing to be worried about since the homeowner is in control of the expenses.
Rental Increase
Homeowner must always review the tenancy agreement for the sell and rent back scheme and it is somewhat similar to the mortgage or renter contract. Take note of the specified rent increases, the maximum rate and the time frame. Beware of unreliable companies that offer good deal or low rental price for the first few months and during the agreement renewal, there comes a very high increase.
Resale of Property
Once the property has been purchased by the investor, it can be sold again at any period of time with a two-month notice to the tenants. There are restrictions however if the investor worked a sell and rent back scheme. This is done as part of the purchase ensuring protection to the renters. This prevents the new homeowners from selling the property until there is the written consent from the tenant.
