Homeowners usually make use of the sell-to-rent process in order to receive cash from their home’s equity, repay a loan, and to solve pressing monetary challenges. This process serves as an alternative to loans which may require monthly repayments. People who use sell-to-rent may have sorted out their needs, but they can no longer benefit from the appreciation of their sold home. So far, EasyKnock has bought "about 100 homes in five southern states" within the US.
- Currently, the only company that offers "a residential sale leaseback program in the United States" is EasyKnock. Founded in 2016, EasyKnock created the very "first residential sale leaseback program," known as "Sell and Stay" (sell-to-rent).
- In the past, people who wanted to sell their homes and still stay in them would have to list their homes for sale first. Using platforms such as Rentback and Figure, a homeowner finds a buyer; the owner can then make a deal to either rent it back or continue living in the house for a while before moving out.
- The EasyKnock program allows US homeowners to sell their homes and cash out the equity funds. While selling these homes, the owners may choose to continue living in them by renting it back based on a lease agreement.
- Since EasyKnock is a recently-established company, online data on its customer experience is scarce. Currently, the company "does not have any complaints registered at the Consumer Financial Protection Bureau".
- According to a CNBC report, EasyKnock has bought "about 100 homes in five southern states". Earlier this year, the company announced plans to expand to "approximately 500 housing markets in more than 35 states and 2,000 homes".
Ty & Tammy
- Ty and Tammy are a case study of homeowners who have used sell-and-stay. This couple made use of this process in order to raise money to build a new home.
- After their apartment was purchased by EasyKnock, the couple benefited by raising the money needed to build their new home. They were particularly glad that this process allows them the opportunity of staying in their current house until their new home is ready.
- This couple did not have any negative experience with the process. In appreciation, they recommended the company, saying "people at EasyKnock are honest and easy to work with". They also went further to recommend the service by saying EasyKnock is the solution for anyone who needs the equity out of his/her home but is not ready to move out.
- Adam, a father with teenage daughters, also used sell-to-rent. The reason behind his decision to use this process was a poor credit score. He described himself as someone who was "property rich, yet poor due to some bumps and bruises along the way".
- After using EasyKnock's pioneer sell-to-rent service, he mentioned that he had a 5-star experience during the entire process — "from start to close".
- Adam also does not have any negative experience with the process. Just like the previous couple, and many other users of the service, Adam was happy to "release the equity" in his home. He mentioned that besides the benefit of "getting a fresh start on life", he did not have to put his "teenage daughters through the stress of moving".
REASONS FOR USING SELL-AND-STAY
- Users of sell-and-stay usually do so in order to receive cash from their home’s equity without having to move out immediately.
- A user of sell-to-rent recently mentioned that "the biggest perk to Sell and Stay" is the ability to buy the home back at an agreed price within a few months.
- Consumers who use sell-to-rent recommend it as a "financial cushion" when a homeowner is "having money issues" such as repaying a loan. The process has earned a reputation for rescuing homeowners from bad financial situations, especially those who are "struggling to make ends meet".
- Users have described sell-and-stay as a simple, fast, and convenient process that can be completed without having to vacate one's home. Many users have been able to close within 30 days.
BENEFITS OF USING SELL-AND-STAY
- The sell-to-rent process allows homeowners to "access the cash tied up" in their home without necessarily having to take out a loan or make monthly payments.
- By using "equity to prepay rent", homeowners may not have to worry about housing expenses for as much as three years.
- Also, the seller transfers the costs of homeownership such as structural maintenance and property taxes.
- This process also provides an alternative for homeowners to avoid the expensive closing costs that are associated with selling a house.
DRAWBACKS AND PAINPOINTS
- A certain user was pleased with the overall experience; however, he gave EasyKnock a 4-star rating because there was "almost no interaction" with the company's staff at the closing day. This made the user feel "less like a customer and more like a case number".
- Once this process is completed, a seller can no longer benefit from the appreciation of the sold home.
- Sellers may not receive as much value for their property as they would if they sold their homes to a private buyer.
- Also, in the event where an investor decides to discontinue renting the house to its previous owner, this results in an inconveniencing situation.