How Does Rent to Buy Property Work for Me?

Rent to Buy is simply a way to buy or sell something, except that the transaction does not take place immediately. The buyer and seller basically agree to the possibility of a sale sometime in the future, usually in a few years' time, and draw up a contract agreement. In the meantime, the Rent to Buyer lives in the property, and pays rent to the Rent to Seller, which also contributes to reducing their house deposit when they go to purchase the home in the future.

This agreement drawn up for a Rent to Buy property through Homes with Options has positives for both the Buyer and Seller, and the flexibility of each individual contract means it can cater to both sets of needs.

Buyers

For Rent to Buyers, one of the main benefits is the ability to live in your ideal property sooner than you thought. This allows you to begin any desired work or home improvements to the house, and begin creating your ultimate home before you've technically purchased it. It means you don't have to wait and rent somewhere else while you're saving up for a deposit, and if you have found your dream house you can secure it already, even before you can fully afford to.

Rent to Buy also means that you aren't throwing away your rent money into a property that you have no investment or future potential in. When you are contributing rent in this scheme, you are contributing towards your future home and your deposit, making it far more of an investment.

It works for you when you aren't fully able to afford a mortgage or house deposit immediately, but also when your credit score is bad or in need of improvement. Rent to Buy offers you a few years to improve your credit score, allowing you to wait until you are completely financially ready before purchasing the home.

Another benefit is that you have the ability to lock in a purchase price at the time of the contract being drawn up, in case home prices rise over the next few years. This means that both Buyer and Seller know what the ultimate price of the property will be, and that price doesn't change at any time throughout the contract.

You can opt out of the contract and finally purchasing the Rent to Buy property at any time, although bear in mind that you would have to compromise whatever money you have already contributed to the home. However, ultimately, the benefits and positives of Rent to Buy from the Buyer's perspective greatly outweigh any potential negatives.

Sellers

One of the most important benefits for the Seller is that you have a greater opportunity to sell your property. If you are finding difficulty in gaining interest for your house or losing any potential sales, then Rent to Sell could be for you. If your property has been empty for a while and you are having trouble paying for the mortgage, then we can set you up with a Buyer who can live in your home and cover your mortgage payments for this property.

Another benefit is that you would have peace of mind that the Buyer tenants were taking care of the home, and it would be a different situation to having regular renters. You wouldn't have to act as a landlord to deal with them or the property, as all of the home improvements would be down to the Rent to Buyer, as part of the agreed terms to eventually purchasing the house.

If you were to Rent to Sell your home, you could also be certain of a fixed price for the property, and wouldn't have to settle for less than you believe the house is worth. At the beginning of the contract, a price would be decided and that wouldn't change. Even if the house price drops over the next few years, you would still have the top fixed price that had been decided at the start.

Another benefit for Renting to Sell is that you can opt out at any point throughout the contract. However, bear in mind that you would potentially lose your right to keep any of the money the Renter has put towards the property deposit.

Should You Post Your Rental Property Details Online?

Online advertising provides easy access to anyone, anywhere and at any time and this is true for people looking for the best rental properties too. Regardless of whether people are looking for short-term or long-term rentals, chances are that they do not have the time required to look for what they need. In the current busy lifestyle, people are looking for ways that can make the works faster and in an efficient manner. Records say that nowadays more and more people are relying on the internet for finding any information they need and this is applicable to searching for rental properties too. This is why, it is recommended by professional realtors that people having properties and are looking for the right tenants can post the details about their houses on websites providing the facility to post rental property classified ad.

As these websites provide the opportunity to even post the photos, homeowners can be benefited. As the people looking for a house will look at the photos online, they will visit to see the house only when they are impressed by the pictures. This reduces the hassles involved in visiting each and every house and the owners can be benefited as they can show their houses physically only to those, who are impressed with the photos and are showing real interest towards hiring the house. Not only photos, the owners can provide whatever details they wish to post. Like for instance, if they have completely furnished their property, they can provide the details, so that they can expect higher rent.

In addition, most of the websites offering the facility to post rental property classified ad, provide this service free of cost. Once the appropriate local portal is found and listed, the homeowners will begin to get a lot of inquiries as this means of marketing can easily reach the intended audience.

The current trend shows that people searching for rental properties through newspapers is reducing and more and more people are depending on the internet. Also, they will not have to pay any addition cost like purchasing newspaper as they already have an internet connection. This is beneficial for property owners as well as they need not have to pay for posting their ads like in the case of newspapers and magazines. Also, home rental classified ads online will also reach international audience apart from local people.

When the home rental classified ads reaches international audience, people looking for rental houses in another country just because of their job transfer can also be benefited.

How Are Property Inspections Done?

The importance of property inspections is now greatly considered by both a landlord and a tenant. It is to their advantage that the unit is checked before and after occupying it to know the present physical condition of it and to determine what needs to be done.

The landlord or property manager would primarily want a record of the condition of the property for reference later on while the tenant would essentially appreciate the assurance of taking on a unit that is in good condition.

It is important to establish exactly what the state of the property is and identify problem areas if there are any. An inspection is a highly technical undertaking. At times, trouble spots are not easily detected by the naked eye. Also, there are matters that need expert skill and knowledge to be handled.

Professional property inspectors have the training and experience to spot red flags and intentionally seek out potential problems. When it comes to property inspections, landlords are aware that an official report provides the credibility required. It will hold up in any legal proceeding and will provide solid support for pertinent issues that may arise in the future.

There are many aspects involved in property inspections. Most homes comprise different elements and each one bears looking into so that you could be certain that everything is in working order or in suitable condition. The scope of an inspection normally covers the importance ones such as doors and windows, heating and cooling systems, plumbing, walls, floors, electrical systems and pests. In many cases, dealings are dissolved when crucial findings involve the presence of termites, the need for a plumbing overhaul, and the discovery of a faulty wiring system.

These are serious issues that no tenant would want to take on. Landlords would be well-advised to resolve them first before they offer to lease their property out. Meanwhile, cracks, holes, and other minor problems can be dealt with prior to tenant occupancy. At times, some tenants would still be willing to move in with the understanding that they wouldn't be blamed and billed for those problems upon their exit. This can be their assurance.

And so, property inspections are really very important. Property inspections are not only recommended before and after occupancy. It serves both the landlord and the tenant well to get a unit inspected regularly. It gives the owner peace of mind as to the treatment of his property as well as a heads-up in case something needs to be repaired.

Find Property to Rent - 15 Ways for Tenants to Spot a Fake Landlord!

Recent news reports of unscrupulous people taking over someone's home and renting it out to either one or more tenants means that if you are a homeowner, a landlord or a tenant, you need to take precautions to avoid being scammed!

If you are a prospective tenant hunting for a property, then it's vital to follow our top 15 ways to spot a fake landlord BEFORE you hand over any money!

To avoid having to ask these questions altogether, only rent from an ARLA or NALS registered letting agent that is also ideally a member of The Property Ombudsman Scheme. They are responsible for agents that have joined their organisations to abide by strict codes of conduct and this means that they are more likely to ensure a property is let legally, including ensuring the landlord owns the property and has, if required, the lender's permission to rent it.

Avoid a Fake Landlord BEFORE you view a property:-

1. Check where the advert is from. If it's from sites where landlord's can advertise for free, or for less than 50, find out how the website vets the properties and landlords. If they do NO vetting be very cautious!

2. Ask for the landlord's full name and address and ideally a land line phone number. Be suspicious if they don't give these details and only give an email address/mobile.

3. Ask if the landlord is a member of any accreditation schemes eg NLA, RLA and/or a local authority scheme, check they are members.

4. Confirm your appointment with them ideally on the land line number.

5. For a small fee (around 4) check on-line at Land Registry that the landlord does own the property. Download the Title Register details which says who owns the property.

How to SPOT a Fake Landlord when viewing a property:-

6. Ask the landlord if you can see the Energy Performance Certificate. This is a document that tells you how much your utility bills will be (very important!) and is a legal requirement for most rental properties (except properties that aren't let on a 'self contained basis', such as licensed HMOs and renting a room).

7. When looking around the home ask what's happened to the previous tenants and if you can have a reference from them.

8. Ask to see the existing gas and any electrical safety certificates. If the previous tenants have just moved out, then the certificates should still be in date, or if they are just out of date, confirm with the gas/electricity company that they did the work for your landlord.

9. Ask the landlord how much deposit they take, how it will be paid (eg cash/cheque/BACs) and which Tenancy Deposit Scheme it will be held in. It should be held in one of three schemes: My Deposits (custodial and safest scheme); Tenancy Dispute Service or My Deposits.

(These are insurance schemes, so if your landlord/agent goes bust, runs off with the money as long as you have evidence it was paid to them you can get your money back.)

Check on-line that they are a member of the scheme they say they are!

10. Ask for a copy of the contract that you will need to sign on move in day, so you can get it checked beforehand.

If the landlord can't supply all or any of the paperwork mentioned above - DO NOT RENT FROM THEM!

Avoid a Fake Landlord on Check in Day:-

1. Never hand over any cash or wire the money until you have received the keys.

2. Unless you are letting through a high street letting agent that is a member of NALS or ARLA (and the Property Ombudsman), don't hand over your deposit unless you have actually gained access to the property.

3. Make sure the landlord has done a full inventory. This is a document that lists all the things that are in the property and describes the quality of the decor. For example it might say 'stain on the living room carpet, near the fireplace' and ideally this statement would be backed up by a photograph. If there is no inventory, be very wary of renting the property without doing one yourself and taking lots of photos. If you don't when it comes to asking for your deposit back, there might be a dispute as the landlord might take money off for a new carpet in the living room because of a stain that was there before you moved in!

4. If there is no contract to sign and this contract has no mention of a tenancy deposit scheme where your deposit will be protected, do not sign! Check it with a specialist lettings legal company first.

5. Check that the gas and electrical safety certificates are real and up to date.

However much you 'fall in love' with a property, or however desperate you are to rent one, don't cut the corners described above. If you do try to rent too quickly, you might miss that the place is freezing cold, despite having all the radiators on, a fake landlord might put you under pressure to secure the property via a deposit.

The Successful Landlord: Analyzing a Rental Application to Choose the Best Renter

While your prospective renter is filling out the application, take a look at their driver's license when they pull it out to write down the number. You want to verify positive identification.

If it's a married couple applying, one application is sufficient. If they are roommates, or relatives, have each person fill out an application so that you can perform independent background checks. Make each person older than 18 sign the lease application.

Review the application while they prospective renter is still there for completeness of information and to identify anything that you might have a question about. The critical information you need is their social security number, birth date, current address with zip code, and permission for a reference and credit check.

You'll need the name and phone number of the current landlord. And it's useful to get the name and phone number of the previous landlord, too. Sometimes a current landlord will give a false-good reference just to get them out of the place! The prior landlord will have no such motivation and will give you an accurate reference.

Make sure that all applicants sign the application. You need this permission to do the background check.

Look for things like more cars than the parking of your home can handle, and so forth.

Do not make any statements that indicate that they can rent the property from you. This is strictly an application. You still have to select the best renter for you.

THE MOST IMPORTANT QUESTION TO ASK

The most important question to ask your prospective renters is, "For what reason are you leaving the home you're in now?"

You'll get lots of answers, some of which are valid, and others will raise a warning flag. I asked one applicant why they were moving. They replied, "We're being evicted."

"Why?"

"Our three-year old kept going to the bathroom out the bedroom window."

INSTANTLY TELL HOW THEY'LL TREAT YOUR PROPERTY

After they've filled out the application, walk them out to the car, and shake their hand as you say good-bye.

Look at their car. You can tell lots about how people will treat your property by how they treat their property.

If their car is well-kept and neat inside, they are very likely to make good renters. If there is trash all over the inside of the car, it's missing hub caps, and so forth, that indicates the condition your house will probably be in when they move out.

Being a Successful Landlord: Three Secrets to Profitably Renting Your House to the Right Tenants

It's not easy being a landlord. You have to get your house ready to rent. You have to advertise to get perspective renters. You have to select the right renters. And then you have to be at their beck and call in the case that they have a problem with the house. And then you have to collect the rent when they're late or evict them when they don't keep their promise to you. What a headache!

Or you can learn the secrets to being successful landlord and put all those headaches behind you. Here are three secrets to successfully renting out your house.

SECRET ONE: SCOPE OUT THE COMPETING PROPERTIES

To find out what you need to do to maximize your success, tour competing properties in your immediate area, acting as if you are prospective renter. You can find out how the other landlords treat their prospects and steal their best methods and make them your own.

Make sure that you pick up copies of their marketing material-that is what they give prospective renters to take away to remind them of what they saw.

Ask for a rental application to see what kind of things they're looking for. Ask if they have a sample lease agreement that you can review. Not every landlord will make this available to you, but it's worth asking for. (Look at my other articles for a free rental lease that you can use as an example.)

If you want to have the complete experience, fill out a rental application and see how you're treated. You can just say that you found some other place or changed your mind if they pick you to rent the house.

If you do this with half a dozen properties, you'll get a great idea of property conditions, rent ranges, and terms and conditions that are common in your area. If you're new landlord, this experience can teach you a lot in very short time.

With this information it will be easy to see if it's worth it for you to rent your home, or if you want to let somebody else manage it, or if you want to put on the market to sell.

SECRET TWO: MAKE YOUR HOUSE VERY DESIRABLE

If your house is just like every other house on the block or like every other apartment in the building, it will be difficult to attract a great renter that will take care of your house and pay the rent on time.

On the other hand, a clearly superior home will attract better renters and allow you to command a higher rent. The kind of people who you want as good tenants will be embarrassed by a dingy and worn-out home. They won't want to bring their friends and family into that environment.

This means you need to invest a little extra in the house to make it look great. With the information you gathered from Secret One, above, you can decide how to put minor upgrades into your home that really stand out from the competition.

I do simple things like upgrade light fixtures, install new flooring and carpeting, replace the kitchen sink, replace the bathroom sink, and replace the drip pans on the stove so it looks fresh and clean.

Consider fresh paint or carefully touch up the walls so everything looks clean and tidy.

I also make sure that the property is absolutely spotless, with clean windows, clean entryway, and professionally cleaned carpets. I also replaced all the light bulbs with maximum wattage bulbs so that the house is as bright as possible. A dark house doesn't show well but a bright house moves fast.

SECRET THREE: SET YOUR RENT AT LEAST 10 PERCENT HIGHER

A slightly higher rent then the competing properties won't scare away the type of renters you're looking for, but will move along the cheap skates that you don't need in your house. And besides, it will be worth it to your renters because your house looks so much better since you've followed Secret Two, above.

To make your higher rent stick, create a marketing page that calls out all the valuable capabilities and features of your home.

Being a Successful Landlord: When You Shouldn't Rent Your Home

In this article, I want you to learn two important things about being a successful landlord: a change in attitude toward you home, and when you SHOULDN'T rent your home.

THE MOST IMPORTANT SECRET TO SUCCESSFULLY RENTING

If you're going to have a worry-free landlord experience, you can't be emotionally attached to your home.

If you're like most homeowners that I know, you're proud of your home. And rightly so. It's the results of your hard work and sweat. You've put your soul into your home.

The sad news is that your renters won't have the same pride or take the same care that you do.
Your home will get scratched and dented. It will deteriorate and you'll see it. When you make an inspection a year later, you'll see the wear and tear that you'd ignore if you were living in the house. Don't let it bother you or you'll go nuts.

Change your viewpoint from that it's your home, to it's their home, and you're collecting money for the privilege of letting them live there and for the wear and tear that's going to happen. Virtually all damage can be repaired, and that's why you collect a damage deposit.

WHEN YOU SHOULDN'T RENT YOUR HOME

There are several situations when I suggest that you not rent your home yourself. Instead consider either selling it or having a property management company deal with renters for you.

* IT'S FARTHER AWAY THAN YOU WANT TO DRIVE

If your rental house is too far away to drive to show it to one person, it's too far away to rent. I think that anything over a half-hour drive is stretching it and asking for headaches. You decide for yourself.

* YOU'RE REAL PICKY ABOUT YOUR PROPERTY

If you are fussy about what people do in your house, you're setting yourself up for an unbelievable nightmare.

So what happens when you find out your renter is rebuilding his motorcycle in the living room? Does this thought drive you nuts? You're better off not being a landlord.

By the way, when you select renters using the methods I'll write about later, this won't happen. And if it does, so what? You'll either clean the carpet or replace it at your renter's expense. No big deal.