cookstar

iTrader: (6)

Been looking recently at taking a punt on something like this, but the whole idea of it is niggling at me a little.

From what I gather you are betting with the odds dependant on people dying!

I'm assuming that the tenants pay a pittance amount of rent so could end up being quite out of pocket if they survive for years and years, taking in to account you will have full responsibility to maintain all aspects of the property as well.

What are your thought on the morality of this kind of deal? Especially as the prices seem to vary wildly on the ages of the occupants.

Luan Pra bang

If you have enough ie 6-7 you can take a punt if the price is right as they can't all live to 103. 1 is a nightmare as a 70 year old can live for 20+ years, how are you even going to know when they croak and how will you stop the grandkids from moving in and trying to take over the pittance in rent.

cookstar

iTrader: (6)

I suppose you would need to monitor the place, as you would as a Landlord anyway to check who was living there. Anyone that's not on a tenancy would surely be able to be evicted. (or buried in the woods)

This is why I was asking as I have no idea how these work, and wanted to see if anyone had any experience with them before looking further in to them.

MattW

Do a search for Sitting Tenant, they can be a good albeit very long term investment.

Account deleted by request

I did buy one a few years ago that had a sit in tenant in. Rent payed at Market rates but as The previous owners had no tenancy agreement they couldn't get them out. I payed 25% less than it's open Market value.

I then started communication with the tenant who was on SSS and managed to convince her to move to a more suitable property around the corner. Had to 'help' her with 2k cash to sweeten the deal. Well worth it though.

A sit in or life tenancy is a gamble though, I just did ok on that one.

Chop

Account deleted by request

Bloody Sn and double posts

Guv

iTrader: (8)

^^ As above but if the tenant is clued up you do have to watch out as they can ask for a lot more to move out of the house which will effect your profit margin.

However if the tenant are elderly then 9 times out of ten they will pop thier clogs within 5 years which of course would be to your benefit but make sure they dont't have any kids or they may have the right yo take there place

Trout

iTrader: (1)

Do some research on Peter Rachman or Nicholas Van Hoogstraten. They have been very successful landlords, particularly with sitting tenants.

cookstar

iTrader: (6)

Some interesting reading with those two.

Trout

iTrader: (1)

I remember when I lived in Brighton, one of the latter's tenants seemed to be very unlucky. First of all there was a fire in the flat, and then one of the occupants fell out of the window. It was four floors up!

Obviously it was just complete bad luck.

cookstar

iTrader: (6)

lol, not really the route I intended on going down, I had more of a sit it out and wait method on my mind.