Renting To Own Basics
Rent to Own for the Win
In the rent to own arrangement, the property owner (seller) declares his or her willingness to sell the house to an interested tenant (prospective buyer) within an agreed time during which the homeowner shall not place the property on the market for sale until the tenant finally purchases the property, or until the agreement is broken or terminated by either party.
Reason for the Rent to Own for the Win
Prospective buyers can take advantage of rent to own for the win to buy their dream home if the seller agrees to the lease option. Tenants usually resort to this arrangement when they are not financially capable of purchasing the property or acquire a mortgage or foot all the bills that relate to buying a home. They can sign an agreement with the homeowner declaring that they will rent the house for an agreed number of years during which they will improve their financial status and have the wherewithal to purchase the property.
The Benefits of Rent to Own
1. The seller receives the option fee, which is the money paid by the tenants when signing the agreement as a commitment to buy the home. The fee is non-refundable, and the market value of the property determines it is a project to the property owner.
2. There is a certainty that the property will be sold. Meanwhile, the homeowner continues to receive rental income until the tenant purchases the property finally.
3. This strategy does not involve hiring a real estate agent to look for a suitable buyer for the property. Both parties can save money on the cost of acquiring the property.
4. Another benefit of a rent to own for the win is that the two parties will share all the expenses incurred due to the maintenance and repair of the building.