The Role of House Buying Companies in the Rental Property Market

Advantages of Selling Your House to a House Buying Company

House buying companies have become controversial figures within the rental property industry due to their lack of regulation from any specific country, unlike other agents or brokers that sell and rent properties. From an industry perspective, they offer benefits both buyers and sellers; however, this comes at a cost. Looking to sell your home quickly and for cash? Check out this link:

Here are some of the roles house buying companies play within this space:

Financial Disclosure

In some cases, house buying companies lack information about themselves. Most of what can be found about them on their company websites is limited and thus has caused concern. Without this vital data, evaluating a company’s financial strength becomes much more challenging.

Housing Market

House buying companies engaged in ‘right to buy’ sales differ from those who simply purchase properties for their clients and don’t actually sell them. House buying firms involved in selling properties tend not to be regulated, while those simply purchasing properties usually are.

Illegal Activities

Reports have surfaced of illegal house buying companies operating in various countries around the world. Due to their secrecy, it’s nearly impossible to monitor them effectively, which allows them to operate undetected. Nonetheless, this type of activity remains relatively rare.

Buying Process

The buying of a property through an agent can take time and be challenging for inexperienced buyers. House buying companies, on the other hand, have much faster processes; most are completed within weeks.


Some people choose to sell their houses to a house buying company in order to inherit the value, rather than money, of their estate. This way, when they pass away, the house will go directly to their children or other heirs – usually saving on inheritance tax payments.

Legal Status

House buying companies typically lack legal standing, meaning they cannot own property on their own. If they wanted to purchase a property to re-sell on, they would need to first rent it out.


Some home buying companies have their own property management department. This can be beneficial, as the company will arrange repairs and maintenance on your behalf. Unfortunately, this service will come at an additional cost to you.

The Market

House buying companies fall into two categories: those who sell their properties and those who simply find them a buyer. The former group faces fierce competition, while those who find buyers don’t face as much opposition.


House buying companies generally perform well in the rental market. Their financial transparency and expedited purchasing processes make them ideal for buyers with lower incomes or little knowledge about renting or selling properties.


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