saf
15-10-2009, 20:39 PM
we all know what rent 2 own is but do you know what 'rent skills swap' is?
with rent to own, you ultimately 'lose' the property through selling it and realising the equity but if you're anything like me, i like collecting and haven't sold a property for a long, long time - my strategy is long term.
the concept of rent to own means you get to 'sell' a property to someone who is willing to spend money and fix it up with a view of buying.
the concept of rent skills swap means you get to rent a property to someone who's willing to fix it up without a view of buying... why would someone go for this option?... because! is the short answer.
common with both options is the fact that you get a long term tenant who will look after the property and more importantly take on a crappy property and put their love into it.
here's how it works (based on a recent deal i've negotiated);
the property doesn't have any central heating or boiler and hasn't been decorated for 20 years. the kitchen needs to be moved into the next room and totally updated. the bathroom needs changing too.
my advert was aimed at potential tenants who had trade contacts. i requested tenant only on HB because warmfront will pay for a new boiler and rads (thanks P.G.). i didn't even mention the rent - just said 'reduced rent' avaialable on this property.
the plan was to take a 5 week deposit in one hand then give it back to the tenant on the other as a contribution towards materials. also, i would charge the incomming tenant the same rent as a 2 bed property (this prop is a 3 bedder) for 12 months to help them with the cost of the refurb. they would save £150 per month.
the plan worked and the new tenants are moving in 2 weeks! happy days!!
with rent to own, you ultimately 'lose' the property through selling it and realising the equity but if you're anything like me, i like collecting and haven't sold a property for a long, long time - my strategy is long term.
the concept of rent to own means you get to 'sell' a property to someone who is willing to spend money and fix it up with a view of buying.
the concept of rent skills swap means you get to rent a property to someone who's willing to fix it up without a view of buying... why would someone go for this option?... because! is the short answer.
common with both options is the fact that you get a long term tenant who will look after the property and more importantly take on a crappy property and put their love into it.
here's how it works (based on a recent deal i've negotiated);
the property doesn't have any central heating or boiler and hasn't been decorated for 20 years. the kitchen needs to be moved into the next room and totally updated. the bathroom needs changing too.
my advert was aimed at potential tenants who had trade contacts. i requested tenant only on HB because warmfront will pay for a new boiler and rads (thanks P.G.). i didn't even mention the rent - just said 'reduced rent' avaialable on this property.
the plan was to take a 5 week deposit in one hand then give it back to the tenant on the other as a contribution towards materials. also, i would charge the incomming tenant the same rent as a 2 bed property (this prop is a 3 bedder) for 12 months to help them with the cost of the refurb. they would save £150 per month.
the plan worked and the new tenants are moving in 2 weeks! happy days!!