How Exactly Does a Rent Back After Selling  Work ?

Length

A rent-back agreement is generally applied in a short-term situation where the seller needs to stay in their property for a little while — it’s not meant to be a long-term solution, unless you want it to be  5, 10, 20  years or life . If you’re hoping to rent your house for more than 12 months after the sale or purchase back your home, a lease-back or a Property Operating Plan “POPs” would be a better option for you. A seller lease back after selling & settlement allows you to customize more specific terms.  The exact amount of time for a rent-back is worked out between you and the buyer of your home/us and would be written into a clear contract. Generally the length of time is flexible and how the deal works is usually not a problem.

Terms

The exact terms of a rent back agreement / POP are negotiable and are determined after the buyer and seller come to an agreement, writing up the terms in a written, binding contract. Terms often include a refundable deposit to ensure against any damage that occurs while the sellers live in the home. Terms include the rental amount, the length of the rental agreement and matters such as refunding any unused portion of the rent if the renter moves out before the end of the agreement.

As for the price, the rent amount is generally based on the local market rate or the amount of the mortgage principal, interest, taxes and insurance & fees (T&C apply).

Legal Matters

A rent-back agreement is legally binding. Just as any renter, you are agreeing to maintain and take care of the property and keep it in the same condition as of the settlement date. In cases of natural disasters or death it is extra important that nothing is left in question, so a clear agreement will be negotiated, from simple tol as complicated & detailed with in built variables, as you need it to be for your lifes circumstances.

Insurance

It is considered to be in the best interest of the new home buyer to take care of the homeowners insurance while you take on the role of the renter and obtain renters insurance. This isn’t usually required but is a way to protect your interests during the rental period. As a new tenant, it would be prudent to purchase renter’s insurance.

Benefits of Working with RENTBACK.

Working with a traditional house buyer in a rent back agreement comes with its drawbacks. For example if you need longer than 60 days to rent your home from the new buyer then lenders may classify the home as an investment property and adjust the terms of the loan. Because investment properties usually require a larger deposit payment this could mean the new buyer would not be willing to let you stay in your home for more than 60 days to stay within the window  a lender will agree to with a lease back, so with us we are much more flexible.

When you work with RENTBACK you don’t have to worry about middle men and lenders creating the terms. Together we work out a rent-back agreement together and with the flexibility of our cash offer you could have terms that allow for staying in the home for longer if need be. Now you don’t have to worry about the pain of selling your house twice or moving AGAIN !

Working with us allows for more expertise when entering a rent-back agreement. 

As Edmund & his team have bought and or dealt in hundreds of deals he is willing to take on the risk of renting the house back to you in order to make the home purchase work for your unique lifes circumstances.

If you’re looking for a rent-back that can fit your unique situation call Edmund and get a fast cash offer and a flexible rent-back agreement today.

CALL OFFICE 1300-911-138 or EDMUND  0468-377-999

HELP YOU SAVE MONEY ON YOUR NEXT CUSTOM LUXURY DESIGN. 

JUST ASK US HOW ..

IF YOU ARE RENTBACKING to build new elsewhere we can help..  Sometimes a standard cookie cutter design from a project home builder, may not what work for you. There can be many reasons for this, the main thing to understand is that a custom home design, doesn’t automatically mean that it will be more expensive to build, in fact in many circumstance the opposite can be true.

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The reasons to have your home custom designed can vary, sometimes it can be out of necessity, and other times it can be simply because you want to stand out from the crowd.

Some of the reasons for having your home custom designed are noted below.

• Maybe you just can’t find that standard design that suites your lifestyle.
• There may be block constraints, such as slope, narrow lots or odd shaped lots.
• Maximizing the orientation of your site can sometimes be difficult with standardized plans.
• Trying to make a standard plan work for a sloppy site can also be difficult.
• When you have smaller lot it’s generally better to design the home to suite the site in order to maximize the available space.