If you are a real estate agent do you have any listings that aren't selling?  Has the seller blamed you for it?  Don't you hate wasting all that time and money trying to sell listings that you can't find buyers for?

Some of those sellers would make great rent to own sellers and that way you'll still get your full commission instead of losing the listing or just finding a renter.

So what makes a good rent to own seller?

1. When their home has been on the market for 90 days or longer - slow selling homes can be good candidates for rent to own because sellers become more open-minded to other ideas as they see their home languishing on the market.

2. Seller has already moved into their new home - whether the seller bought or built a new home and the old one hasn't sold yet, they have two homes and two house payments.  No seller wants to pay for a home to sit empty for very long

3. Relocated to a new area - if a seller has relocated and their old home hasn't sold yet

4. New marriage - if the newlyweds were both homeowners and they move into one house and are selling the other

5. Owe as much on their home as it's worth - this lack of equity makes it difficult for a seller to sell their home outright because they'll have to bring money to closing.  However, a rent to own home may bring a price premium that can cover some or all of this difference.  Plus, the additional time of the rental period may allow the seller to pay down more principal on their mortgage

6. Landlord selling a rental property - landlords can make great rent to own sellers since they are already used to the idea of having tenants.  Also, because the home isn't their primary residence, they aren't likely to need the money from the sale right away

7. Inherited the property - recently inherited property is usually sitting empty and the owners may not need the money right away.  This works well with one or two heirs, but when you have many it tends to get more difficult to get them all to agree to anything

8. Vacation home or 2nd home - because this isn't the seller's principal residence, the home may be sitting empty.  Getting rent to own buyers will give the seller some cash each month that they don't have now.

Remember, rent to owns or lease options are a great option for sellers who have trouble selling their home conventionally.

Market rent is what it is and you can't change that as a home seller, lease option investor or real estate agent.  You have a small amount of wiggle room but if you are asking too much in rent on your rent to own home it won't rent.  I can't tell you how many real estate agents I talk to about doing a rent to own just assume the mortgage payment of the seller should be the asking price for rent.

Unfortunately in some markets the market rent just won't be enough to cover a high mortgage payment.  The seller has to understand that if their entire payment is more than the rent they will have to cover the difference.

So what can you do if the seller can't afford to cover that difference each month?  Are your rent to own sellers out of luck?  Not necessarily.  Here's an idea to get buyers to pay more in monthly rent, which will work if your seller has equity in their home.  When you are advertising the home, advertise for market rent.  Once you find a buyer that wants the home ask them, "Would you like to earn 50% on your money?"

They'll probably say, "Yes!" or "What do you mean?"

I would respond by saying, "If you pay $200 more in rent each month, meaning $1,400 instead of $1,200, the sellers will give you that $200 each month as an option credit on this home, plus an additional $100 option credit.  This would give you a 50% return on your money and help you buy this home much more quickly by building up option credits.  Would this work for you?"

This gives your seller an extra $200 per month to cover the mortgage payment, but they will credit it back to the rent to own buyer at closing.  If the buyer doesn't purchase the home, the seller keeps the extra money.