Avoid losing rental payments during the sales process of your rental property
Many landlords come to a point where they intend to sell a property they own and rent to a tenant. The long existing process of issuing notice to a tenant before sale often leaving months where the property is vacant need not be!
It is estimated that landlords lose around £550m a year in lost rental income after asking a tenant to vacate in the process of getting ready for a sale.
Research by Vesta Property also shows that nearly 1 in 9 tenants has been forced to leave their home due to change of ownership. That figure increased when looking at those aged between 25 and 34.
Vesta Property provides a market place where landlords can sell properties to other landlords without losing any rental income from happy sitting tenants. It states that the practice of evicting a tenant then selling a property is outdated.
The ‘New Model’ which offers tenants in place sale and purchase provides a win win for all involved. The existing landlord is able to sell their property, the tenants need not be evicted keeping their home and the new landlord gets to extend their portfolio without having to find a tenant.
The survey spoke with 600 tenants where 78% said they were happy in their home and not wanting to move and a similar number said it was crazy that one landlord would evict a tenant to sell to another landlord who would then have to find themselves a new tenant.
Of the survey, 70% said they didn’t mind if their landlord sold providing that their contract and rental amount remained the same.
CEO of Vesta Property said: “Discussions enforcing three-year tenancies have caused strong reactions from both landlords and tenants who do not want to be tied into overly long contracts.”
“This is not to say that tenants do not want to stay in their. But the answer is not to make the system more rigid, it is to move with the times and mould it into something that works for both landlords and tenants alike.”
“If a landlord needs to sell their property they should absolutely have the right to do that within a time frame that works for all and ideally without losing rental income.”
If you are a landlord and need to compare landlord insurance, get in touch with our experts who have access to some extremely competitive schemes. You can really on Total Landlord Insurance to find you a great rate!