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Are there benefits for rent to own?
I'm considering selling my house. I'm not in a rush and wondering the best way to go about it. As a seller, are there any benefits for me if I do a rent to own agreement? I understand how that's good for the renter/buyer. But as the landlord/seller, is there any benefit for me?
Asked By Daryl | Memphis, TN | 229 views | Renting | 5 months ago
Answer(3)
Julianne Clark | Your Lowcountry Compass
Charter One Realty
In my 18 years real estate experience -- rent to own can get really messy. Make sure you get an attorney involved if you decide to go that route. Also -- get enough nonrefundable down money -- that if the Buyer is unable to get financing at the end of the "rent to own term", your covered for any "remodeling" they did...
- 5 months ago
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Mohamed Hassan
NextHome
I would like to say becareful, I have seen more fraud than any other type, and more legal headaches and disappointments by both renters and owners in the long run. I have been doing this for 20 years and have sold over a quarter billion dollars in real estate, and I can tell you from experience I would stay away from it. To the point that when any party comes and asks me to assist with that, I excuse myself after giving them my 2 cents. Stay away. Hire an attorney if you will do it whether you are the owner or renter to represent you and review all docs.
- 2 weeks ago
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Kathleen Heady
eXp Realty LLC, 400 Union Ave STE 200, Olympia, WA 98501
Hi Darly, There are some benefits to do rent-to owner which include attracting long-term tenants, consistent income, reduced maintenance costs as many rent-to-own agreements will shift some maintenance responsibilities to the tenants, reducing your costs and upkeep in the property. May receive higher purchase price, rent-to-own agreements often set a higher sales prices compared to the current market value, easier sale process when the time comes, in a slow market can attract tenants who may not qualify to buy but aspire to homeownership. The cons the tenants may not purchase the home at the end of the lease, legal and financial complexity as rent-to-own agreements require careful drafting to ensure they are legally sound, property depreciation can also happen if market conditions change or tenant neglects the property decreasing the property value.
- 5 months ago
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