A ground-breaking ‘rent to buy’ service that helps tenants get on the property ladder has been expanded to include private landlords.
Keyzy rents out properties to tenants and then helps them get on the property ladder by holding their hand to save up a deposit and get a mortgage usually after a three-to-four-year long tenancy.
But co-founder Simon Groll says it is now looking for landlords keen to add their properties to the new scheme, called Keyzy for Landlords.
“Landlords get 30% to 60% higher net income because there is no maintenance, no fees to pay to agents or property management firms and no void periods,” he says.
Fixed sale price
Participating landlords are offered a future fixed price for their property and once both sides agree, then transfer its management over to Keyzy which subsequently finds a renter to move in who is looking to buy their first home.
The tenant lives in the property for three to four years and, while paying a fixed rent, also saves towards a deposit to buy the home at the end of the term, which can be extended if necessary.
Once the end of the agreement period is reached, the tenant buys the property via a mortgage arranged by Keyzy and the landlord receives the proceeds of the sale.
Groll (pictured) says landlords aren’t ‘locked in’ and at the end of the lease period can decide not to use Keyzy to sell or rent out their property.
His firm makes money by charging a rent premium to the tenant and at a later date, referral fees from mortgage lenders.
“Keyzy for Landlords is ideal both for those with existing properties looking to sell up a few years down the line, and also those looking to invest in new properties but who want a more hands-off approach,” says Groll.
it’s about time someone made it easier for landlords to get more out of their properties
So, a tenant chooses a home they’d like to buy and pays rent, plus a rent premium plus savings toward a deposit.
What could go wrong? The first being that the Landlord doesn’t want to sell after those 3 or 4 years perhaps?