What is a Rent-to-Own Home?
Simply put, a rent-to-own home is a contractual lease agreement that allows tenants to presently rent the property at a fixed rate while providing them with the future option to purchase said property by some agreed-upon date.
While a rent-to-home agreement looks a lot like a standard lease agreement, there are other complexities and considerations involved that may deter some from signing the dotted line. That said, this type of agreement doesn’t come without its own risks and disadvantages.
Nevertheless, for the right candidate, rent-to-own homes can be tremendously advantageous, even appropriate given certain circumstances. In this article, this is where we’ll be directing our focus. With that said, what follows will be a discussion surrounding the advantages of rent-to-own homes.
Advantages of Rent-to-Own Homes
Renting to own can provide tremendous benefits depending on whether or not you’re the right candidate for a rent-to-own property. Not only can it allow you to begin building real equity in the property you’ve agreed to rent but it can save you a whole lot of upfront capital that purchasing a home would otherwise require.
The advantages of rent-to-own homes don’t stop there, however. The following is a list of several advantages of renting to own:
- No Mortgage Obligations
- Zero Overhead Expenses or Maintenance Bills
- No Upfront Down Payment Necessary
- Zero Real Estate Tax Obligations
- Flexible Living Arrangements
- Reduced Insurance Fees
- Fixed Rent Payments
- Free from Property Value Concerns
- Agreed Upon Purchase Price
- Build Equity
- Live In Before Purchasing
- Suitable for Those with Poor Credit/Lack of Savings
As mentioned earlier, because the rent-to-own lease agreement looks a lot like a standard lease agreement, tenants are free from certain obligations that homeowners would otherwise be liable for; things like property tax, maintenance and repair expenses, and mortgage obligations.
In addition, they’re also the beneficiary of several luxuries that homeowners are, however, without the long-term obligations or financial responsibilities attached; things like amenities, desirable locations, and increases in property value.
Whether you have a poor credit score due to unexpected life events, have failed to save a sufficient amount of capital to place a downpayment on the purchase of a home, or simply prefer a living arrangement free from obligation and responsibility (comparatively speaking, of course), the advantages of rent-to-own homes might just be applicable to your situation.
Is Renting to Own for You?
There are advantages and disadvantages of renting to own. Contrastingly, there are also advantages and disadvantages to purchasing a home. Whether or not renting to own is for you comes down to several considerations.
To summarize, however, if you’re not yet financially secure to purchase a home yet you desire to, one day, own one, renting to own might be for you. If you desire greater flexibility in where you live and what your obligations are, renting to own might be for you. Finally, if you simply want to evert the burdens that inevitably accompany homeownership, renting to own might be for you.
If you think you’re a candidate for a rent-to-own home and are interested in learning more, visit us at https://homeownersoon.com/contact-us/. Our experienced team of professionals here at Home Owner Soon are here to help!