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Plight of accidental landlords stuck with several mortgages – are property lease options the answer?
Plight of accidental landlords stuck with several mortgages – are property lease options the answer?
Although accidental landlords are making money from the record rise in rents over the last few years, but there are many accidental landlords who are letting their property purely because they cannot sell them.
KENSINGTON,
London,
United Kingdom
(prbd.net)
04/01/2013
Although accidental landlords are making money from the record rise in rents over the last few years, but there are many accidental landlords who are letting their property purely because they cannot sell them.
There could be as many as half a million accidental landlords in this position, having drifted into the business of being a landlord with no intention to do so.
Reena Malra has discovered and developed strategies to take the focus off the property price and put it on the flexible and convenient payment terms. This is how Reena can structure transactions where the Buyer and the Seller both get what they really want by establishing their circumstances, motivation and needs. She has mentored 100's of investors and specialises in property lease options, instalment contracts and rent to buy. She says:
"In my business I frequently come across sellers who are unable to sell due to the economic climate so they are left with little choice other than to rent the place instead of giving the keys to the lender and face the consequences of poor credit and potential bankruptcy as they would still owe the bank.
"As the phrase suggests, accidental landlords never planned on being a landlord and therefore are not trained or prepared. This leaves them vulnerable and at the mercy of scrupulous tenants who may look to take advantage of such situations. To protect from such tenants landlords should do proper tenant referencing to minimize their risk.
"Unfortunately these landlords have no idea of the expenses or their responsibility as a landlord which can see them inadvertently breaking the law.
"I come across many accidental landlords who are either walking away from their property or are being repossessed as tenants have not paid for months which leads to arrears with the mortgage payments.
"I can assist as an experienced landlady myself to educate and support such landlords so that they manage their properties and tenants properly. On occasion I take legal responsibility of managing their properties and paying their mortgage and other expenses. In my experience accidental landlords are extremely appreciative of such arrangement as it frees them their unfamiliar and potentially financially crippling situation.
"I can provide an alternative solution to accidental landlords who feel they have no option but to rent. The solution is to draw up legal paperwork to take a property lease option over a property over a fixed term with a view to buy in the future when the market corrects itself. In the mean time I will take care of their mortgage payments and any other expenses. This means a property lease option or instalment contract - something which can solve the problem of the accidental landlord."
Notes to Editors
Reena Malra has mentored 100's of investors, both novice and experienced. Her techniques are empowering new and seasoned investors to successfully structure profitable property lease options, instalment contracts and other creative deals from start through to finish. She has been interviewed several times on Sky TV as a guest speaker giving expert advice on property lease options and instalment contract, and has also featured in "Property Investment News" magazine explaining the pros and cons of doing creative strategies. Find out more about what a property lease option is and listen to Reena Marla's interview by clicking here. Click here to find out more about how Reena Malra can help you buy a home with little or no money down.
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