Rent To Own Information

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Rent-to-own homes also called an "OPTION TO PURCHASE" provides 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 two to 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 the time frame 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.

Benefits For Buyers-Tenants

• The ability to "buy" with bad (but hopefully a improving) credit score.
  
• The ability to lock in a purchase price, while property values are increasing.
  
• A way to get to know a home and a neighborhood without making a huge purchase.
  
• The ability to customize a home and make wanted improvements to the property. 
  
• Equity in home at the time of purchase or closing. 
  
• Pride in ownership. 
  
• Return on investment. 

Benefits For Sellers-Landlords

• Perfect program for Landlords who do not want to be a Landlord anymore.
  
• No maintenance costs or repair costs during rent to own period. 
  
• Lock in fair sales price of home prior to listing. 
  
• No messy paperwork or extra large fees associated with sale of property. 
  
• Increased return on investment. 
  
• Active market of potential Buyers-Tenants. 
  
• Stress free transaction. 
  
• Larger safety/security deposit for home. 
  
• Buyers-Tenants take better care of your home and property. Sellers-Landlords! 
• Very quick turnaround! 96 hours or less on an approved Buyer-Tenant. 

Do you want a rent to own property? Add your name to our database here.