What is Rent to Own? What benefits can it provide? Here, we have listed some of the advantages a buyer can gain through Rent to own transactions:
What is Rent To Own?
Rent to Own is a transaction that allows buyers to rent properties with the possibility of an eventual sale. The buyer and seller enter into a contract which includes the certain amount of rent which the renter has to pay each month and a set date by which the property can be purchased entirely by the renter. A portion of the monthly rent acts as down payment that reduces the money needed to buy the property.
Here are just some of the benefits of rent to own:
1. No Pressure
You found the home but still working on the money to purchase it. Rent to own transactions will give you the time you need. It will also give you the opportunity to live in the house until you decide to utilize the option of buying it. No down payment is required, rather than an upfront option fee, otherwise known as a rental deposit.
Rent to own will allow a buyer to establish a sense of certainty with regard to the property and the environment before committing to the purchase. The buyer will have the flexibility to walk away from the property once he/she felt that it’s not what he/she is looking for. The buyer will have the opportunity to test and inspect the property and the living conditions of the environment.
3. Fixed Purchase Price
On the agreed contract the buyer will have the advantage of having to lock a purchase price that will remain the same even if property prices rise in the future, unless it is not specified in the contract. So before entering an agreement make sure to seek legal advice from lawyers to avoid legal complications.