Why Should You Try Rent-to-Own Housing?

Like a car lease, rent-to-own housing allows a seller to give rights to the tenant to buy his/her house in the future, usually one to three years after, depending on the agreement. Instead of renting a condo unit or apartment for some years, start investing for a house through “rent to own” policy. Here are some reasons to convince you.

For Tenants

1. Option Money
   If you are a tenant, you have to pay for your landlord/landlady the option money, as you have the option of whether to buy the house or not. If you have experienced a massive loss of income, you can also stop renting it, unlike when you do a house loan. At the same time, you can own that property after some time, instead of indefinitely renting it.
   
   
2. Homeownership Even While Renting
   If you have a low income, high debt, or unable to pay for the down payment, rent-to-own got your back. Rent-to-own gives you an opportunity for homeownership while living in that house. Aside from being able to purchase it after some period, it also gives you a chance to learn and determine the flaws of the house before committing to purchasing it.

For Sellers

1. Higher Selling Price
   Rent-to-own housing does benefit not only the tenant but also the seller. Usually, tenants pay 20% above the typical rent of the house credited to him/her at times of eventual down payment. Sellers divert to this tactic if they are having trouble unloading the house and can no longer afford the mortgage payment.
   
   
2. Attracts More Buyers
   If you are having a hard time selling your property, you can attract a lot of buyers if you switch to the rent-to-own method. You can earn rental income while gradually selling your property. If your tenant backs out, another one will replace him, so you have a new source of income. All of these perks are unattainable by just selling the house right away.
   
   
3. Tenants are Responsible for Maintenance
   As a seller, merely letting the tenant rent the house can give you more problems. In rent-to-own, you are not responsible for maintaining the property as the renter needs to do it because he/she is going to be the owner of that house. There is also a no refund policy in rent-to-own when the tenant stopped renting your property.

Conclusion
Renting to own a house or any property can give you not only a lot of perks but also perils at the same time. Do not be too impulsive in diving into this kind of transaction as it is more delicate than what you think. Before anything else, talk to a bank about financing before signing any papers of ownership or any Commitment.

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