Please Be wary of sale and rent back
Now after years of picking up no press coverage companies that offer rent back schemes are now under the spotlight. We have seen a flurry of activity in the press focusing on landlords who look to buy house’s and rent it back to the old owners.
It has come to light that some rouge operators in this market have been putting profits before being fair and ethical. For most homeowners that have sold their home and need to rent it back their most important concern is the security of tenure. Many rent back companies offer only Assured Short hold Tenancies.After the fixed term of the contract is up, the landord can ask the tenants to leave. But there are few other contracts that protect the rights of the landlord.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..
Sell 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 on for a quick profit. Most Rent Back companies 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 so would like more long term tenants.
People who are looking at a sale and rent back scheme should be made aware of the pitfalls and talk in detail with the person who is buying their home. Homeowners should ask for references from previous clients who have sold their home and rent back.
RentBack Direct is such a company with good references and ethical standards.Contact them regarding rent back and you will not be dissapointed.
