A rent to own agreement is ideal for someone who is not quite ready to buy a home, but wants to rent the home they intend to buy; this is usually for a year or two. An agreement is signed with the owner of the property, specifying the terms.
Any agreement would indicate the responsibilities of the renter, such as taking care of minor repairs, paying water bills and maintaining the yard. An agreement should also indicate any changes a tenant may make, such as upgrading or repainting.
Rent to own lease agreements are different from regular rental agreements, in that as part of the rental contract, you agree to buy the home after a specified time. In some cases, a part of the rent is held back and put towards the down payment that you will need to purchase the property. The deposit is not given back to you if you back out of the agreement and do not buy the home at the end of the lease term.
The advantages of this are clear; if you want to buy a home eventually but need some time to improve your credit score, it allows you to do just that while actually living in the home you will buy. Living in the home will also allow you to become familiar with any repairs or work that may need doing; it also allows you to get to know the neighborhood. In short, it is a good chance to get to know both the home and the area you will be living in and make sure that both are a good fit.
There are advantages and disadvantages to both, when it comes to renting vs owning a home. Renting homes means that the owner is responsible for any repairs, basic maintenance and upkeep, snow removal and the various taxes and insurance. However, if you own your home, the money that you spend every month will ultimately be yours and it comes with a feeling of financial security. Owning your home means that it is yours and you can do as you wish and decorate it how you want to. For most of us, home ownership is a goal in life and rent to own homes may be the ideal way to achieve that goal.
Rent to own homes can often be found in the real estate section of your local newspaper, or in classified ads. If the idea of rent to own lease agreements sounds appealing, you should be sure to speak to a company that specializes in these arrangements, and get their advice. A good company will make sure that you understand the procedures and what is involved, as well as any legal aspects. Having the right advice can make your rent to own experience as easy and as profitable as possible.
