Thursday, November 16, 2023 / by Tatiana Seidlin
What is a Rent-to-Own Property?
A rent-to-own property is an agreement between the buyer and seller that allows the buyer to purchase a home after a few years of renting. It can be a bit more complex than a regular rental but is a viable alternative to purchasing a home you have not lived in yet. You will have to sign a standard lease and an option to buy agreement.
Typically, the buyer pays a slightly higher rent. In some cases, the seller allows these extra funds to act as a down payment at the end of the agreement. Should the buyer choose not to purchase, the extra payments are forfeited.
While a rent-to-own property allows you to "test drive" homeownership, you stand to lose money if you choose not to buy in the end.
It may sound risky BUT if you see the rental as a place you want to call home, it is worth speaking to your landlord about it.
KW Advisors | United Home Group