Rent-to-Own, Your Lifesaver in a Drowning Market
Rent-to-Own, Your Lifesaver in a Drowning Market
Here are some reasons rent-to-own can be beneficial for you:
- Higher Purchase Price – Rent-to-own sales typically command a price premium over traditional saes. The buyer is paying extra for the flexibility he recieves by not having to do an outright purchase immediately
- Higher Rent – You may be able to charge more for monthly rent in a rent-to-own than you would for just a straight rental.
- Cash Flow – If your monthly payments are less than the monthly rent, the difference goes into your pocket.
- Option Fee – This upfront fee paid to you by your buyer is what secures the purchase price down the road. If the buyer closes on the home, it would be applied towards the purchase price. If the buyer elects to not purchase the home, the option fee is forfeited and still remains yours. Eitehr way you win. If you were to just rent the home, then the tenant would put down a security deposit. The option fee is different than a security deposit. A security deposit is owned by the tenant and can’t be used by the owner, except for repairing damages, unpaid rent and other provisions as mandated under state laws.
Rent-to-Own
Excerpt from Rent-To-Sell: Your Hands on Guide to SELL Your Home When Buyers are Scarce.