Top 6 Benefits of Rent to Own Houses

For those who cannot buy a home through conventional means, rent to own houses are a viable option to home ownership. The rent to own method brings the dream of home ownership to people who may have otherwise thought it was impossible.

Rent Money Becomes an Investment

In most situations, rent money goes into the landlord's pocket, to pay the mortgage on the home, to supplement his or her income, and does nothing more for the renter. With rent to own houses, a portion of the rent money goes toward the purchase of the home, making it an easier way for most renters to invest in a home.

Purchase Can Be Made Regardless of Credit Score

For those with less than perfect credit, rent to own houses are the way to go. Since the rent payments are going toward the purchase of the home, it works much like a mortgage payment would. When it comes time to make the last payment and buy the house, the landlord can use the credit the tenants established with them to justify the sale of the home and transfer the deed.

Move in Quicker

When it comes to a typical mortgage and home purchase, it can take months from the time the offer is accepted on a home before the buyers can move in. With rent to own houses, people can usually move in within a week or two of the deal being made and the documentation being signed.

Equity Grows Faster

When compared to the average mortgage, equity builds faster in a rent to own situation, because the appreciation happens faster. When a tenant is in control of the home, he or she may make improvements as they pay the rent. When it is time to make the final payment, the purchase price may be much less than the home is worth.

Full Control of the Home

When the tenants move in, they get full control over the home, meaning they can make adjustments and improvements where they see fit. Because they have such high stake in the property, they are not going to spend their own money to improve a home they won't live in for a long time and eventually own, so landlords don't have to worry about the tenants damaging the property.

No Taxes

Since the home still belongs to the landlord, he or she remains responsible for the property taxes until the balance is paid in full and ownership is transferred to the tenant. This makes it easy for the tenants to save money until they own the home, to prepare for the expense once they do.

There are many other benefits for both tenants and landlords. While tenants may pay higher rent for a situation like this compared to a conventional renting situation, they will do so willingly to know the property will eventually be their own.

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