If you have a rental property it’s important to ensure you have the basics in place when bringing in a new tenant.  The basics will ensure that if you did ever need to evict then the process was as simple and pain free as possible.

The last thing you need is energy and resources spent trying to evict tenants when simple procedures at the start of a contract will ensure you are covered should the need arise.

Here we update you on the new laws surrounding Section 21 and how they can affect landlords:

What is Section 21?

If you want to evict a tenant you generally start the eviction process by issuing a section 21 notice.   The laws and procedures for doing so have recently (October 2018) changed.  In a nutshell, if you don’t follow the new procedures your eviction notice will not be legal and you will likely have problems that could have been easily avoided.

The new section 21 laws apply to rental properties in England.

How does Section 21 affect people with rental properties?

There are a number of things that landlords need to ensure when a contract begins in order to be in a position to issue a section 21 if and when needed.    This includes ensuring your tenants have received a copy (digital or hard copy) of the How to Rent Checklist.   In addition, landlords need to provide a gas safety certificate and Energy Performance Certificates to tenants, as well as information relating to the protection of their deposit.

What are the next best steps  for landlords?

If you are a Bricknells landlord we will have already ensured you are compliant.  You don’t need to do anything and you have nothing to worry about.

If you are not a Bricknells landlord…

• According to the new rules,  landlords that wish to serve their tenants with a Section 21, or ‘no-fault’ eviction must:
• Ensure that they have issued a ‘How to rent: the checklist for renting in England’ guide either digitally or as a hard copy;
• Provide tenants with an up to date Gas Safety Certificate;
• Issue the property’s Energy Performance Certificate (except where the property isn’t required to have one)
• Give tenants Information relating to the protection of their deposit (which must be protected);

The form a landlord issues is now a ‘prescribed form’ called Form 6A.   It must follow a set style. Previously it could just be in writing. This prescribed form has parts that require it to be filled out in a certain way. Completing the form incorrectly could mean it’s invalid before you have even started.  The form can’t be served in the first 4 months of a tenancy and it’s also now time limited so has a short 6 month shelf life.

If you are a private landlord you may well be unaware of the legislative burden and hassle that can be endured if a dispute with a tenant arises.  Bricknells offer fully managed landlord packages to take the hassle out of your rental.  Contact us to find out more.

We’re delighted to have been awarded the Gold Award for the Best Lettings Branch in Rotherham in 2018.

We have been issued this award thanks to all the glowing reviews on allAgents – we really appreciate the positive feedback and are pleased that all of our hard work has been recognised!

Alongside the Gold Award for the best Best Lettings Branch in Rotherham, we have also been awarded the Silver Award for the Best Lettings Branch in the entire South Yorkshire region!

Whether you are a tenant looking for a property to rent or a landlord with a property to let, these awards show that you can be assured of a quality service at Bricknells Rentals. We are very proud to receive these awards and will continue to work hard to ensure that our services remain the best in Rotherham, Sheffield and across South Yorkshire on into 2019.

There is no escaping the fact that over the last couple of decades, the rise in the number buy-to-let properties in Rotherham has been nothing short of extraordinary.

The press has sometimes argued that landlords are hoovering up all the properties to build buy-to-let empires and that has stopped the younger generations from being able to buy their first home. The argument is that this has led to a whole subsection of young people who have been dubbed ‘Generation Rent’. In addition, there has been a lot of pressure on successive governments who have been blamed for giving landlords an unfair advantage with the tax system.

However, has the criticism of landlords been fair?

It was only a few weeks ago that we read a newspaper article in the Bricknells office about one landlord who had decided to sell their modest buy-to-let portfolio for a variety of reasons. One driving factor was the new tax rules on buy-to-let that were introduced last year. The comments section of the newspaper and the associated social media posts were filled with hate and certainly not deserved.

Like all aspects in life, there are always good and bad landlords, just like there are good and bad letting agents (we’re thankfully one of the highest rated ones in Rotherham!) Equally, it should be said that there are good tenants and bad tenants as well! Bad letting agents and bad landlords should be routed out but not at the expense of the vast majority who are good and decent.

Are the 2000+ landlords in Rotherham actually at fault?

It was the Conservative government in the 1980s that gave people the right to buy their council house – this took those properties out of the collective pot of social rented houses for future generations to rent. With no council houses left there was an explosion in privately rented accommodation in the early 2000s. Landlords have been vilified by many with the press claiming that their ravenous avarice has meant that they have operated at the expense of poor renters who are unable to buy their first home. However, we think there are at least seven reasons that created the perfect storm for the private renting explosion in the 2000s

1. The Housing Acts of 1988 and 1996

The Housing Acts of 1988 and 1996 gave buy-to-let landlords the right to remove tenants after six months, without the need for fault. Essentially this allowed banks and building societies to start to lend on buy-to-let properties knowing that if the mortgage payments weren’t kept up to date, the property could be repossessed without the issue of sitting tenants being in the property for many years. By 1997 buy-to-let mortgages were born and this is where the problems really began. This was not the fault of landlords but rather circumstances that the government created that allowed them to flourish.

2. The relaxation of lending criteria

In the early 2000s, those same building societies and banks began to relax their lending criteria. Landlords could provide self-certification meaning that they did not need to prove their income. In addition, mortgages could often be a huge 8 times the annual salary of a landlord. Finally, interest only mortgage deals helped to keep repayments inexpensive. The banks therefore deserve more blame for allowing private landlords to expand their portfolios rather than the landlords themselves.

3. Not enough council houses have been built in the last 20 years

It’s easy to bash the Conservative government for their failure with Local Authority Housing since 2010 but can you believe that the Labour government only built 6,510 council houses in the whole of the UK between 1997 and 2010? Since 2010 there have been a further 20,840 which is woefully low when compared to the number built in the 1960s and 1970s. As a result, people who would have usually rented from the local council had no option but to rent privately. Again, this was not the fault of the landlords but a lack of foresight in government policy.

4. Less homes have been built in the last two decades

Not only are less council houses being built across the UK, the last 20 years has also seen a decline in the number of households built in general. The country currently builds less houses than are needed for our ever-expanding population. Less homes being built has inflated housing prices ensuring that younger generations have struggled to be able to get their foot on the housing ladder and have had to turn to private renting. Again, this is not the failure of landlords but instead a failure of government policy.

5. Pensions are worth less

Many of the landlords we work with at Bricknells Rentals are people who lost conviction in personal pensions. Many pension schemes have declined in value and as a result, those in their late 40s and 50s began to look for a better place to invest their savings for retirement. With the seemingly endless growth in housing prices, it made sense for these people to invest in buy-to-let property to guarantee a larger disposable income once they had retired.

6. Ultra-low interest rates for 9 years until the global financial crisis in 2008/2009

Interest rates were very low leading up to the global financial crisis which began 10 years ago in 2008. The Bank of England have set base interest rates independently of the Government since 1997. Although this was seen as a positive move at the time, those interest rates were very low which meant that borrowing was cheap. This resulted in many people borrowing money to get involved in the buy-to-let market. If borrowing had not been as cheap, an explosion in buy-to-let landlords would have been far less likely to happen.

7. An increase in EU migration since 2004

The biggest expansion of the European Union occurred in 2004. 10 nations joined including 8 Eastern European countries. This move brought around 1.4m people to the UK for work… and those people needed somewhere to live. This encouraged private landlords who were able to provide affordable rented accommodation for working immigrants. Again, this was not the fault of landlords. Instead, it was a small consequence of global and European politics.

The perfect conditions for an eruption in the private rented sector

As you can see, many factors combined to allow the private rented sector to explode. And that is what happened in Rotherham! Commercially speaking, purchasing a Rotherham property has been undoubtedly the best thing anyone could have done with their hard-earned savings since 1998, where property values in have risen by 221.04%. Additionally, the average landlord could have earned up to £209,000 in rent since that period.

We hope that we have shown that blame cannot be laid at the feet of all buy-to-let landlords and that other factors have allowed them to . Yet the younger generation have definitely lost out. They are now often incapable to get on the property ladder (especially in London).

Over the last few years the Government have started to redress the balance by increasing taxes for landlords. Alongside this, the banks are now much tighter on their lending criteria meaning that the heady days of the early 2000s are long gone for landlords in our area. In the past 20 years, almost any buy-to-let investment made money – but not anymore.

How this has changed Bricknells Rentals

Being a letting agent has evolved from being a glorified rent collector to a trusted advisor giving specific portfolio strategy planning on each landlord’s buy-to-let portfolio.

We had a couple of instances recently of portfolio landlords in different situations – one wanted income in retirement from his buy-to-let properties, the other from Whiston wanted to pass on a chunk of cash to his grandchildren so that they can buy a home in 15 to 20 years time. Both of these landlord’s portfolios were woefully going to miss the targets and expectations, so over 2018, we have advised and helped them out. We sold a few of their properties, refinanced and purchased other types of Rotherham property to enable them to hit their future goals (because some properties in Rotherham are better for income and some are better for capital growth). That is what portfolio strategy planning is!

If you think you need portfolio strategy planning, we’re happy to help and advise you – whether you are a Bricknells landlord or not (in fact, the aforementioned Whiston landlord wasn’t!) Please give us a call or send us an email. All our details can be found on this website and we are happy to help!

There is potentially good news for buy-to-let landlords in the Rotherham area: the combined value of our local housing market has fallen by £178.6 million in the last 6 months, meaning the average value of a Rotherham property has decreased in value by an average of £4,560. This is also great news for Rotherham first time buyers looking to get a foot on the property ladder.

Investors will be on the look out for potential bargains that may help them to expand their portfolio. There are many options about and we recommend the featured property deals over at the Rotherham Property Blog for landlords (and first time buyers) who are looking to purchase a property. You can also visit the website of Fenton Board who are an independent estate agent operating in the local area.

What’s the cause of the drop and is it important?

The reason for this drop is the slight hesitation in the market due to the uncertainty over Brexit.

Investing in Rotherham property, whether you want to live in it or as a buy-to-let investment, is a long-term game. In the grand scheme of things, this minor change over the last 5 or 10 years is nothing.

The RICS’s latest survey of its Chartered Surveyor members showed that nationally the number of properties actually selling has dropped for the 16th month in a row. Locally in Rotherham, certain sectors of the market are matching that trend, yet others aren’t. It really depends which price band and type of property you are looking for.

The RICS also said its member’s lettings data showed a lower number of rental properties coming on to the market. Anecdotal evidence suggests that (and this is born out in the recent English Housing Survey figures) Rotherham tenants over the last few years are stopping in their rental properties longer, meaning less are coming onto the market for rent.

We have noticed locally that when the landlord has gone the extra mile in terms of decoration and standard of finish, the price of rents has been pushed up. Where landlords have been remiss with improvements, rents are often declining. Rotherham tenants are getting pickier – but will pay top dollar for quality. So much so, I believe there will be a cumulative rise of around 14-16% in private rents over the course of the next five years for the best properties on the market.

What about the property values?

The drop in Rotherham property values isn’t concerning and is a drop in the ocean when looking at the value of property across our local area.

In the short term, say over the next six months and assuming nothing silly happens in Brexit negotiations, it will be more of the same until the end of the year. In the meantime, the on-going challenges remain the same such as building more affordable properties locally and nationally. Ultimately, it is likely that property values across the country will recommence an upward trajectory as we go into 2019.

A final thought for buy-to-let landlords

Local buy-to-let landlords, the Government has been trying to rebalance the housing market by taxing landlords and providing a lift for first time buyers. We posted an article about this recently. It’s important to be aware of how this might impact you, so if you do need our help and guidance, please get in touch. We are always happy to assist you.

Over the last twenty years, there has been a shift in the way the UK’s property market works. Between the 1960s and 1990s, a large majority of twenty somethings saved up their 5% deposit, went without life’s luxuries of going out and holidays etc., for a couple of years and then bought their first home with their hard earned savings.

By 2000, the statistics painted a clear picture: 50.2% of Rotherham 25 to 29 years owned their own home (compared to 46% nationally) and 70.2% of Rotherham 30 to 34 year olds had entered into home ownership (compared to 64.2% nationally). The remaining youngsters mostly rented from the Council and in some rare cases, privately rented.

How things have changed! Now it’s 2018, and those levels of homeownership have slipped dramatically. Only 26.8% of Rotherham 25 to 29 year olds and 47.2% of Rotherham 30 to 34 year olds own their own home (interestingly this now mirrors the national picture of 24.5% for the younger age cohort but is significantly less than 64.2% for the older 30 to 34 year cohort).

There was concern in Government since the late 2000s that this shift from homeownership to private renting wasn’t good for the well-being of our country. Things needed to change in order to make it a more level playing field for first time buyers. House prices needed to be more realistic and there needed to be a carrot and stick for both landlords and first time buyers.

In the 1980s and 1990s, interest rates were the weapon of choice of Government to cool or heat up the UK housing market – and it did work – up to a point. It’s just interest rates also affected so many other sectors of the UK economy (and not always a in good way). The policy of interest rates to control the economy is called ‘Monetary Policy’. Monetary policy is primarily concerned with the management of interest rates (and the supply of money) and is carried out by the Bank of England (under direction from the Government).

However, in this new, Brexit environment, the use of higher interest rates wouldn’t directly affect landlords (as around two thirds of buy-to-let properties are bought without a mortgage). Therefore, an increase in interest rates would have hardly any effect on landlords and would hit the first time buyers – the people the Government would be trying to help!

In addition, given muted growth of real income (i.e. real income being the growth salaries after inflation) in the past few years, an uplift in interest rates (from their ultra-low 0.5% current levels) would have a massive effect on household disposable income. Yet, over 90% of new mortgages in 2018 being taken are fixed rate and with such low rates, it has made buying a property comparatively attractive.

Instead, over the last 8 years, the Government has encouraged first time buyers and clipped the wings of landlords with another type of economic policy – Fiscal Policy (Fiscal Policy is the collective term for the taxing (and spending) actions of the Government).  First time buyers have had the Help to Buy Scheme, Stamp Duty Exemption and contributions to their deposit by HMRC.

On the other side the coin, landlords have had the way they are able to offset the tax relief of their mortgage payments against income change (for the worse), an increase in Stamp Duty (for the worse) and they will be hit with additional costs as the Government will be phasing out fees to tenants in the next 12 to 18 months.

So, what does this all mean for the 3,090 Rotherham landlords?

The days of making money in Rotherham buy to let with your eyes closed are long gone. There are going to be testing times for Rotherham landlords, yet there is still a defined opportunity for those Rotherham landlords who are willing to do their homework and take guidance from specialists and experts. That’s where Bricknells Rentals can really help you thrive.

It’s important to look at your Rotherham portfolio and ascertaining whether it is designed to hit what you want from the investment – both in terms of income now and the future, capital growth and when you plan to dispose of your assets. We can provide professional analysis if that would be useful to you.

We have provided expert advice to many Rotherham landlords (including those who use Bricknells to manage their property or find them tenants, as well as those who used our competitors). On many occasions recently, we have advised them to SELL. Yes, you read the correctly! We have advised them to sell some of their portfolio to either reduce mortgage debt or to buy other types of property that match what they want to gain in both the short and the long term from their investments.

This may sound strange but we believe that our role isn’t just to collect rent. It’s also to give strategic advice and opinion on each landlord’s portfolio to help them meet their current and future investment goals. If this advice sounds like it may be helpful to you as a landlord, please get in touch. We’d be happy to talk to you!

Opportunities will appear in the Rotherham property market. If you put the time in, there will be deals and great bargains to take advantage of. Many landlords in Rotherham sent us Rightmove links each week asking our opinion on the suitability of the investment. Some are exceptional, whilst others are duds. We often refer to people to the Rotherham Property Blog where they feature deals of the week that may be good investments for buy-to-let landlords.

The bottom line is that all estimates predict that private renting will continue to outgrow first time buyers in the next 5 to 10 years. As we aren’t building enough homes in the UK, there’s only one direction that rents can travel in… upwards!

If you need any assistance about the buy-to-let market or property management, we are ready to help. You can read more about our fully managed and let only services on our website or get in direct contact with us here.

Ruban Selvanayagam, Co-Founder of Property Solvers, on why landlords need to wake up to the effects of Section 24.

Back in July 2015, former Chancellor George Osborne unexpectedly sprung Section 24 of the Finance (No. 2) Act.

The legislation essentially restricts mortgage interest tax relief for personally-owned residential property.

Before coming into effect, landlords could offset 100% of their mortgage costs against annual rental revenue.  By the time Section 24 fully rolls out, we will only be able to deduct 20% credit on mortgage costs.

Why was it introduced?

The reasoning behind Section 24 remains a moot point.  There is, however, a broad consensus that it came as part of a raft of top-down measures aimed at stemming the growth of the buy-to-let sector.

In April 2016, for instance, stamp duty for buy-to-let and other second home purchases effectively doubled.  Then the 2017 Prudential Regulation Authority (PRA) stress-testing criteria placed notable restrictions on landlords’ leveraging capacity.

In short, landlords have become the easy target.

What Landlords Should Know About Section 24

• The legislation will be phased in over the next four years. For the 2017/18 tax year, landlords can claim 75% tax relief.  Over the following 3 tax years, the available relief will decrease in 25% increments until 2020 (to 0%).  However, note there is a mortgage cost tax credit of 20% (the basic rate of income tax);
• The initial impact of Section 24 will only be truly felt upon receipt of the 2018/19 tax bill (due at the end of January 2019);
• Landlords that own property in a Limited company (typically a special purpose vehicle) will not be affected. They will still be able to offset 100% of mortgage interest costs;
• The amount of tax payable will depend on what tax bracket the individual landlords is in. For instance, those in the lower tax bracket may not be impacted at all by these changes;
• If a landlord has a high amount of borrowing secured against the property, the potential tax liability is likely to be higher.

What Are the Options to Mitigate the Effects of Section 24

Below are some of the more practical strategies to counter the effects of Section 24 that landlords have been implementing in recent years:

• Deleveraging buy-to-let portfolio holdings: make capital repayments or perhaps transfer lump sums from existing savings to your mortgage account(s);
• Transferring buy-to-let properties to a spouse or civil partner: this strategy assumes that he/she is a low rate taxpayer.  It would be important to confirm that any supplementary rental income will not push your spouse or partner into the higher tax bracket. It could also become difficult for your partner to earn any extra income in the future without crystallising extra tax liabilities as a result of Section 24;
• Portfolio buy-to-let property owners could divest and effectively clear personally-owned mortgages: the idea would be to use the proceeds of sale to make further acquisitions within a more tax-efficient Limited Company structure. Should you be considering this option, remember that Capital Gains Tax (CGT) on the proceeds of sale will be due (not mention stamp duty on new acquisitions). It’s also worth thinking about the practical effects that any disposals will have on cash flow and existing tenancy agreements;
• Increasing rents: according to government data, the number of homes for private rent fell by 46,000 between March 2016 and March 2017 which may suggest that rental rises are imminent (due to constraining supply).  However, much will depend on local market dynamics.  Landlords will have to be certain that homes are still genuinely affordable and that price rises are justified by decent standards;
• Transferring properties into a limited company “wrapper”: this is a process by which buy-to-let property owners effectively ‘sell’ properties to a corporate structure.  In this scenario, both capital gains tax (CGT) and stamp duty (SDLT) are crystallised at market value (not at the purchase price).  CGT can be minimised by means of incorporation relief – however there are strict rules governing if and how this can be done.  Similarly, portfolio landlords could explore multiple dwellings relief, taxation at non-residential rates and transferring properties into a partnership to limit SDLT liabilities.  It’s worth noting that unused property losses (as an individual) cannot be transferred over when transferring properties into Limited company ownership.  Furthermore, landlords would also have to refinance with a Special Purpose Vehicle (SPV) buy-to-let lender, thereby potentially losing any competitive rates;
• Deed of Trust arrangements (also known as Beneficial Interest Company Trusts): perhaps one of the most contentious areas, an artificial structure is used to transfer the beneficial interest of a property into a Limited Company whilst retaining title and the existing mortgage in one´s own name.  The general advice from experienced tax advisors is to avoid such schemes.  The Income Tax Act prevents individuals from transferring an income stream into a company for tax reasons. Most (if not all) lenders terms and conditions will also not permit the mortgage of a personally owned property to be transferred into a company in this way.  Moreover, you may be open to allegations of “mortgage fraud” which, in a worst-case scenario, could lead to the loan being called in or even more serious legal action.

Crucially, before embarking on any tax mitigation strategy, it is imperative to undertake a detailed cost-benefit analysis and speak to a qualified accountant / tax advisor.  A suitable professional will be able to advise you on the best way to “financially engineer” any portfolio restructure in line with your own circumstances.

You can also request a “pre-transaction ruling” or “non-statutory clearance” from the HMRC to provide more certainty that there will be no contraventions of General Anti-Abuse Rules (GAAR), Disclosure of Tax Avoidance Schemes (DOTAS) and other tax evasion legislation.

Where Next?

A frustrated Judicial Review attempt and a Chancellor with little intention of backtracking would lead us to believe that the chances of any kind of reversal look slim.

However, this doesn’t mean that the industry should implicitly accept Section 24.  The National Landlord Association (NLA), Association of Residential Lettings Agents (ARLA) and “Axe the Tenant Tax” campaigns should all be lauded for their lobbying efforts to highlight the unfairness of this legislation.  We would encourage readers to stay up-to-date with these bodies work, get involved and also write to your local MP.

If you haven’t already, remember to sign the petition seeking the reintroduction of full mortgage interest relief and removal of the 3% stamp duty surcharge.  At 100,000 signatures, the petition will be considered for debate in Parliament.

The demand for decent quality rental accommodation shows little sign of waning.  Despite all the negativity towards buy-to-let in recent years, there are serious opportunities for landlords and investors to capitalise on the changing tide.

For landlords determined to remain in the sector, seeking the correct tax advice is fundamental.  Those looking at new purchases have been moving towards more tax-efficient special purpose vehicle (limited company) acquisitions.  Although slightly more complex in terms of profit extraction and securing finance, they are generally deemed as a safer means of structuring future holdings.

Should you be considering a sale of your rented property to either deleverage and limit future tax liabilities or completely exit the buy-to-let, the team at Property Solvers would be happy to have a no-obligation chat. Please visit our Sell Tenanted Property page for more information about how we work.

It’s our opinion that buy-to-let investment in Rotherham, in the long term, will bring substantial returns for landlords, irrespective of the latest regulation and tax changes.

But just how much could landlords make in the next 25 years? We’ve looked at an average £93,000 terraced/town house property purchased with a 25% deposit and worked out how much a basic tax-paying landlord might make. Taking a very conservative view, landlords could see a projected net profit of £174,541 per property over this time period through capital gains and rental. When inflation is taken into account that works out at £102,804 (in today’s money) – around £4,112 per year.

Capital gains make up a substantial part of a landlord’s returns

Capital gains are a key part of a landlord’s profit. Again, being very conservative, we have assumed that Rotherham house prices between now and 2043 will rise at half the rate they did between 1993 and 2018 (the preceding 25 years). Therefore our example Rotherham property would grow in value from £93,000 to £192,464, providing gross capital gains of £99,464.

How much rent will a landlord make?

A typical Rotherham landlord receives, an average rent of £5,400 per annum per terraced/town house property. As a result, over a 25-year period, the above property would generate a total rental income of £206,415 (again, this is very conservative estimate assuming  a compound annual growth rate in the rent of 1.71% per annum).

What about the costs to running a buy-to-let property?

There are of course costs to running a buy-to-let property, including mortgages, void periods, repairs, agents fees etc. We’ve estimated that these costs will be £131,338 – the result is the aforementioned net profit level of £174,541.

Now of course we’ve made assumptions to reach these figures, but we have tried to be very unadventurous with those assumptions!

The buy-to-let property market here in Rotherham and across the UK is experiencing a massive sea of change. Regulation and tax changes have altered the dynamic in the property market, diminishing its appeal to inexperienced and amateur landlords, and these new tax changes can mean higher tax bills for higher rate tax landlords. Yet, despite these rising costs, there are still healthy returns to be found in Rotherham buy-to-let investment for knowledgeable and steadfast landlords. That’s why more and more landlords are contacting Bricknells Rentals for expert help when it comes to their property – you can find out more about our services, including our fully managed service, by visiting our dedicated landlord page of this website.

Buy-to-let is a long-term business undertaking, necessitating commitment and expertise. Don’t put your head in the sand and think it doesn’t affect you.

Landlords must be equipped to start business and tax planning, take portfolio management advice to ensure their investments will meet their investment goals, appreciate the risks as well as the rewards, and, most crucially, understand the obligations they have towards their tenants. These are all things that we can help you with.

If you are a Rotherham landlord, irrespective of whether you are a client at Bricknells Rentals, feel free to get in touch with us for an informal chat on the future direction of the Rotherham rental market and where opportunities may lie – our expert advice can really help you take your property portfolio to the next level.

We’ve recently launched our very own Rent to Own scheme, which has generated a lot of interest among both landlords and tenants. Tenants in particular see Rent to Own as a great opportunity for them to get their foot on the housing ladder.

If you’ve not heard of Rent to Own, we’ve put together a short article here. If you’re a landlord considering Rent to Own, head here for more information.

If you are a tenant yourself, thisarticle is for you – we want to share the reasons why you might consider Rent to Own. Why should you take the step to become a Tenant Buyer? Read on to find out more…

Rent to Own is brilliant for those tenants who can’t currently raise the deposit

Do you have aspirations of owning your own home but are not currently in a position to purchase? Rent to Own is perfect for you! We have all heard the stories of tenants who would love to buy their own home but are forever trapped in a cycle where they cannot save for a deposit – this is where Rent to Own comes in.

With Rent to Own, part of the rent you pay each month goes to saving for a deposit which will be used to buy the property at the end of the pre-agreed period of time. This means you get to move into your dream house now rather than battling to save up for it in 5, 10 or even 15 years’ time. Furthermore, you’re actually saving to buy it each month during that timeframe!

Rent to Own is useful for those with poor credit

With Rent to Own there is no need to qualify for a mortgage straight away. This is great news for tenants who want to own their own home but currently have poor credit which might impact their ability to borrow

Rent to Own allows you to live in the home that you will purchase in the future whilst sorting out your credit record in order to get a mortgage at the end of the pre-agreed period. If you’re in this position, Rent to Own could be a fantastic opportunity!

Rent to Own can be beneficial for self-employed tenants

We deal with many self-employed tenants, who are thinking about buying and are in good financial position but are unable to get a mortgage as they need three years of ‘good accounts’ in order to satisfy the bank or building society’s requirements. With Rent to Own, these tenants are able to let the house with the option to buy after a few years. This gives time to further establish those all-important accounts ready to get a mortgage

Are you interested? Find out more information at Bricknells Rentals.

At Bricknells Rentals we are committed to creating a fair and equitable deal that will suit both the Tenant Buyer and the landlord. As you can see, there are many reasons for tenants to become Tenant Buyers. If you are a tenant that is interested in Rent to Own, why not register your interest with us? We would love to hear from you and we can show you the Rent to Own properties we currently have available. Get in touch with us today!

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.

We are very excited to be launching our very own Rent to Own scheme. What is Rent to Own? Who is it for? Find out all of this and more below!

What is Rent to Own and how does it work?

We’re putting a modern spin on a very old idea!

The concept of Rent to Own has been around for many centuries in one form or another and has been used commercially by house builders since the early 1900s. How it works present day is very simple…

In short, we will be letting properties on behalf of landlords to a ‘Tenant Buyer’ who has aspirations of owning their own home one day. This Tenant Buyer will rent the property at a pre-agreed rental price for a pre-agreed term (typically 5-10 years). At the end of the period, the Tenant Buyer will have the option to buy the property at a pre-agreed price!

In addition to the monthly rent, the Tenant Buyer pays a top-up which goes to save for a deposit for a mortgage at the end of the term. They don’t have to complete the purchase at the end of the pre-agreed period, but they would lose all saved via the top-up fee.

Who is Rent to Own most useful for?

Our Rent to Own scheme is an exciting opportunity for both tenants who are looking to buy, as well as landlords in the Yorkshire area.

In the current economic climate it can often be hard to purchase or sell a property. With Rent to Own, Tenant Buyers who are not in the position to purchase can find their dream home and live in it now rather than wait 5, 10 or 15 years down the line.

Furthermore, it can also be hard for landlords who owe close to or more on the mortgage than the property is worth. Rent to Own can be a huge benefit to those in this position. In addition, investors also find that they can increase the return on their portfolios with a greater net profit over the period of time of the agreement.

What we’re doing with Rent to Own is providing a fair and equitable way of helping both vendors and Tenant Buyers in finding a desirable outcome in the purchase and selling of property.

I’m interested – what should I do?

We would love to hear from landlords who think that Rent to Own might be a good option for them. We can answer your questions and help you find a Tenant Buyer. Please get in touch with us via email us at enquiries@bricknells.ohsositepreview.co.uk or by calling 01709 365 584.