Landlords

Why is Rent to Own a good deal for landlords?

15th May 2018

We’re launching our very Rent to Own scheme and many landlords are getting in touch with us to discuss how it could benefit them. There are many reasons why a landlord might choose Rent to Own over a traditional let so we thought we’d share some of them here. If you’re a landlord, read on to find out more!

If you’ve not heard about our Rent to Own scheme, click here to hear what it is all about.

Rent to Own is more profitable

On average Rent to Own is 28% more profitable as the Tenant Buyer becomes responsible for the repairs to the property. Although requirement does exclude your statutory responsibilities such as gas safety checks and smoke alarms, it’s still a very good deal for a landlord from a financial point of view.

Rent to Own is hugely beneficial when a landlord owes more money than the property is worth

In the current economic climate many people own close to or more on the mortgage than a property is worth. In the vast majority of circumstances, you will get more money back than the property is worth should they sell to the Tenant Buyer after the pre-agreed period.

Rent to Own provides a clear exit strategy

With Rent to Own you have a clear indication of when the Tenant Buyer will buy the property. As with any sale, this may fall through – it is an option to buy after the pre-agreed period, rather than an obligation. However, during that time, you will have been receiving the agreed rent and in many cases the Tenant Buyer has improved the property. Furthermore, if the sale doesn’t go through, the Tenant Buyer loses all the top-up fee they’ve paid – making it all the more likely they’ll complete the purchase.

Rent to Own means far less hassle for landlords

Even with the strictest checks, you never quite know what a tenant will be like when letting your property to them. However, with a Tenant Buyer you are letting to someone who is very likely to become a homeowner rather than remain as a tenant. They will therefore treat their home as such. They tend not to miss rent payments and they usually take care to look after the property. As a result, you’ll find it is far less hassle for you as the landlord.

Rent to Own will lead to improvements in the home

As we’ve already mentioned, the Tenant Buyer becomes responsible for house repairs to the property. However, Tenant Buyers see the property as their own and treat it as such – as a result, in most situations they will improve the property to some extent.

Is it time for you to join our Rent to Own scheme?

There are so many reasons landlords may be interested in Rent to Own. Has one of the points above struck a chord with you? Why not get in touch with us to discuss in greater detail about how Rent to Own may be the best solution for you and your property? Call us today: 01709 365 584 or get in touch with us via our website.