How To Choose The Right Sale and Rent Back Company?

 

After looking at all the options you decide 'Yes, I want to sell and rent back my home' you need to find the best specialist company you can find. Selling and renting back your home is an extremely important decision so it is essential that you are well informed before you take action. The more information you have the more likely it is that you will make the best decision for you and your family. The aim of this article is to describe 4 factors that you need to consider before you choose a person or company to go with.

 

It is important you are comfortable with the person or Sale and Rent Back company you choose as it will be a long term relationship. The following four factors should be considered carefully before you make a final decision:

 

• Long Term Security: you need to be sure that the company is willing and able to offer you long term security. Get this in writing within the Tenancy Agreement which should give you the option to renew your tenancy every 6 to 12 months as long as you adhere to your obligations (i.e. pay your rent and look after the property). Some will include an automatic renewal clause meaning that the tenancy will be renewed automatically unless you say otherwise.

 

• Rent: you need to confirm the amount of rent you will be charged and also how often this rent is to be reviewed. It is normal for rent to be reviewed and raised in small amounts on an annual basis but this needs to be confirmed. An annual rise matching inflation, an annual rise matching the market rents in the area, or a fixed increase of 4 to 5% would be normal. You need to be confident that your new landlord will not raise rent unexpectedly or by a huge amount.

 

• Purchase Price: It is obviously in your interests to get a good price for your property but be careful when a company offers full market value for your property (or near to it) and says you can also rent it back for the long term. They will not be able to do this and make money. They are therefore very likely to be lying and they will either lower the price they offer you at the last minute, give a price that is much below market value but they pretend is at market value or try and recover their costs some other way. It costs money to buy a house and rent it back so a company needs to buy at a discount even if they only want to break even.

 

• Attitude & trustworthiness: It is important you feel the person or company buying and renting back your property will have a caring and professional attitude towards you, their future tenants. They will be responsible for the maintenance and safety of your property for the long term so it is important that they take this seriously. Some companies spend all their effort on closing the deal but fail to meet their responsibilities as landlords. As well as getting everything in writing you should feel that you trust them.