It’s not always very clear when the term “Rent to own homes” pops up. Just a few years ago, you would hardly have heard about this term. A “rent to own” contract requires buyers to pay rent to the home owners, but a portion of the rent goes towards the home purchase at a later date. Home buyers who might not be able to afford a home mostly find a “Rent to own” more appealing.
Let us take a look at the pros and cons
1 – The rent paid by tenant is usually a little more than market rent, as part of the rent will be going towards the down payment of the property. This amount will be none refundable if the renter backs out at the end of the agreement.
2 – For home sellers – having a long term renter and an eager buyer who will care for the house more than just another tenant.
3 – For investment property owners – More potential tenants would be interested in rent to own option compared to straightforward home sale. Renters are mostly the individuals who cannot afford a down payment. Compared to traditional renters, these tenants supply more income by paying of a portion of rent.
While a rent to own home deal delivers a way to buy a home for customers with minor credit is issues. Working with a Realtor can benefit buyers to find a rent to own home and can also help negotiate the contract to minimize the buyer’s risk.
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315 W. Elliott Rd. Suite 107-218
Tempe, AZ 85284