RENT to BUY for your Tenants can dramatically increase your profits, it can save you hassle, headache and you have a guaranteed buyer at the end of a long term tenancy agreement.
So, what is RENT to BUY for your Tenants?
RENT TO BUY is a fantastic way for your existing tenant or new tenant to eventually own the property that they are currently renting or going to rent. We have launched this product due to more and more tenants enquiring if they can purchase the property that they are in.
What are the benefits to you the seller, of doing a RENT TO BUY?
• With a tenant buyer in place you practically eliminate voids.
• You will have a reliable tenant who has a huge incentive to pay their rent on time.
• The tenant pays for all maintenance costs.
• You will benefit from a future sale of your property, at a pre-agreed price.
We recommend that you analyse your portfolio and decide which properties you wish to sell within the next 5 to 10 years and offer a RENT TO BUY facility on these.
What rent does the tenant pay under the RENT TO BUY scheme until they purchase the property?
• An Assured Short Hold Tenancy Agreement is offered at a reduced rent of between 10-20% below the current rental value for a period of 6 months to 5 years.
• A lower rental figure is agreed to allow the tenant the opportunity to save up for the required deposit needed to purchase the property.
• A lower rental figure is also agreed because the tenant will be responsible for all maintenance costs and the seller has a guaranteed monthly rental income with no voids. Therefore both parties have a beneficial agreement which a reduced market rent will achieve.
If this sounds complicated, let me give you an example to explain it better-Example 1
Your tenant is doing our RENT TO BUY scheme because they don’t have the deposit to buy at the moment
• Current Market Value £100,000
• Your tenant has agreed a 5 year RENT TO BUY scheme to allow them the time to save for a 10% deposit needed to purchase your property.
• A 10% deposit is £10,000 and split over 5 years, this is £2,000 per year or £166.67 per month the tenant needs to save towards the proposed mortgage deposit.
• The current rent is £500 pcm but it has been agreed to be lowered by 10% to £450 pcm.
• The tenant will cover all maintenance costs for this reduced rent.
• The tenants pay £450 plus their instalments towards the mortgage deposit of £166.67 = £616.67
• After 5 years the 10% deposit will have been paid and the tenant is now in a position to buy your property.
RENT TO BUY is worth a serious pause for thought if you want to eliminate
repairs, voids and rent arrears
If you would like to schedule a personal call, with our Senior Property Consultant, Mike Bell you can do so here: http://www.nguhomesalesonline.co.uk/contact.php
Or, alternatively register your interest via
Or call: 0191 491 0333 and ask for Mike Bell
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