Understanding Rent to Own Homes
You can find a lot of rental homes today, but finding rent to own homes are not really that easy. Sometimes rent to own homes are also called lease to buy homes or lease with the opportunity to purchase homes. All of these names all refer to rent to own homes with basically the same set up.
In rent to own homes, the renter has the chance to purchase the house when the time of rent is up. The amount paid as rent will be subtracted when the renter buys the house. Negotiations are usually according to the market prices, and the deal will be settled after these negotiations. But, the details are flexible and they are based on the situation of the time. Sometimes the price is already decided upon even before the renter moves in to rent the house. In each case, the features of the agreement can vary.
When there are rent to home agreements, these are usually very flexible. It is beneficial for renters to rent the house that they are interested in buying so that they can get hold of it at their credit. There are many renters who move in with the intent of buying the house at the end of the rental period. In this arrangement, you can bring in everything you possess and use it in the house you are renting until the time comes when you can buy it. The rental period can be used by the renter to know what it is like living in that house before making the final decision of buying it from the owner. The benefit in this situation falls on the renter.
It is not always a favorable situation for the seller. This is because buyers have so much flexibility and advantage, the seller might lose control over the situation. There is no surety if the renter will buy the home at the end of the rent period. If he doesn’t, the seller would be in a position where he might have lost prospective buyers when the house was being rented.
Sellers get to keep the paid rental if the renter does not pursue with the purchase and this is according to contract. Since their house will be vacant when the renter leaves, the paid rental would be considered his profit for it. The chance still stands that in real estate the seller would have had the chance to sell his house for a greater profit. But, the gain and loss depends on the way the seller takes the deal.
Most real estate agents do not really deal with rent to own houses. Make sure you inform your real estate agent that your intention is to look for rent to own houses.