Rent-to-own homes provide buyers-tenants and sellers-landlords additional options during questionable times for the market or the individual parties. The general agreement allows for a potential buyer who may not have the capital to buy the house out-right or the credit to get a loan, to pay a deposit up-front, traditional rent, and a rent premium to live in the desired home immediately.
The deposit on a rent-to-own is usually three to five percent of the property price. The traditional rent goes straight to the seller-landlord, as in any other rental agreement. The rent premium acts as a further deposit toward the purchase of the house. Most rent-to-own contracts are fairly short term – three years is the usual length – and the price of the property is usually established at the contract signing. The buyers-tenants must get approved for a traditional home loan within three - five years from the start of the agreement, or buy the home outright with cash.
For security and planning, both parties establish a property sale price at the beginning of the agreement – or decide to go with the market price at the time of the purchase – and write the sale price into the contract.
Rent-To-Own Is A Win Win Situation For All Parties Involved!
Benefits For Buyers-Tenants
Benefits For Sellers-Landlords
Do you want to list your property as Rent To Own? Contact us today!
Established in 2004, Help U Rent provides experienced, reliable, full-service licensed real estate and property management services to residents and property owners. Nervous about your property adventure? Don’t be. Whether you're getting ready to buy or sell, in the middle of it, or just looking for some answers, our top-notch skills ensure you get the best experience possible. It’s what we love to do.