Estimated Read Time: 12 minutes
Editor: Shaun Callacher
4 Reasons Home Owners Would Consider Rent-Rent & Lease Options
In a rising rental property market, can lease options and rent-rent still work?
There is a lot of scepticism from new investors, when it comes to a landlord tying up their property on a lease (rent-rent) or a lease option. In this post, I share 4 current reasons why landlords and home owners would consider a lease (rent-rent) or a lease option. By understanding what I am about to share, you can leverage this knowledge in your favour:
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4 Current reasons....
1) 150% council tax on empty properties
In 2013 the government allowed local councils to increase council tax to up to 150% for all properties that are empty for 2 years are more (information: www.gov.uk/council-tax/second-homes-and-empty-properties). This is to try and persuade those home owners with empty properties to get their property back in use and decrease the housing shortage.
This is a lot of money for property owners to be forking out! If the property hasn't been empty for 2 years, the owner could still be liable to pay a large bill towards council tax. Check out the local council tax rates in your local council, you may be able to save a lot of home owners a lot of money!
2) Local Licensing
Recently in my local area (Liverpool) the local council have brought in selective licensing to all rental properties. This is to try and prevent bad landlords. I personally think, it's just a money making scam to bring in more revenue to the council....but I won't go into that!
Either way, what it means is all landlords have to pay a fee for every rental property they own. This maybe too much for a landlord to pay, so you may be able to help them? Check out your local council to see if they have selective licensing, if they haven't already brought it in, they may be bringing it in soon, more and more councils want to create millions of pounds to their bottom line.
3) Student market decreasing in outskirts of city centre
Over the last few years, more and more cities have seen a decrease in students wishing to live in landlord multi let properties on the edge of the city centre. The students instead, have opted to live in purpose built student accomodation based closer to their univeristy and the main city centre.
The effect of this has meant lots of 'student orientated' landlords have empty properties they don't know what to do with. Maybe you can help? Then rent it to young professionals?
4) Increase in foreign investors
In the UK there has been a large increase from foreign investors purchasing property. For plenty of foreigners, the UK is a seen as a safe haven to put their money into. This is due to strong English law going back hundreds of years, and the country being a democracy. These investors tend to be interested in potential capital growth and live abroad. Therefore, they need someone to look after the property in the meantime. Potential Rent-Rent?
By understanding the above, you can start to search for these home owners and be the solution to their problem.
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