Whether you are looking for your first home, or looking to move into something a little bigger to fit your needs now, there are many options available. One of those options is renting to own.
This is a great option for families just starting out and who maybe can’t afford large monthly mortgage payments. Many times, landlords will accept monthly payments that are no more than a regular rent payment would be, which may be more affordable for the purchaser.Some of the benefits of renting to own versus renting alone are as follows:
1. You can treat the property as you own it, because after all, that is the goal here. For you to own it eventually. You can upgrade it and make repairs/remodel as you see fit without permission for the current owner.
2. Many times, you won’t have to pay high insurance payments as you would with a traditional mortgage loan for homeowners insurance.
There are also benefits for the landlord who allows you to rent to own, such as more money in their pocket for selling it themselves. They don’t have to pay a middle man a commission for selling the property for them.Also, it is a monthly income for them as you make your payments to them, but they don’t have to worry about the upkeep of the property if something breaks down or tears up, as you would take care of those problems yourself as the new property owner.
All in all, it can be a win-win situation for all parties involved. Of course you will want to make sure you have a legal binding contract in place so you don’t get it half paid for and the landlord decides not to sell, or visa versa, so the renter/new homeowner don’t back out on the agreement and leave the landlord holding the bag.
If you find yourself uncertain about how everything works, you may want to check out Ownerwiz or other similar companies that offer assistance with the rent to own/home buying process. These types of companies can help you find the right home without going outside of your price range.
Best advice, do you homework, shop around and get the deal that best fits your needs. The more research you do, the better chance you will have of making the best decision on your next home.