Lack of enough money to pay for a housing down payment has pushed more and more individuals and families into renting. Most of these families prefer this option because of the fact that it has a cheaper asking price on a monthly basis compared to having to prepare a huge amount of money for a down payment. Also, renting allows these families to earn for a down payment.
Even though renting has become a more convenient means of living, still, most individuals and families dream of one day having their own homes.
Having your own home is far more comfortable than renting and most of those who are renting get attached to the house they are renting and later on plan to buy the property.
The good news is a current trend in real estate to have the option to buy the house they are currently renting, Rent to Own a Home is now available.
In the rent to own option tenants are required to rent the house first for two to five years before they can get a chance to buy the property.
In this case, sellers have to check if the tenants they would allow to lease are patient enough to wait for this king of agreement and are good payers.
Upon completing the number of years and the tenant decides to buy the house, the seller then gives the buyer the total amount he or she has to pay minus all the accumulated rental fees plus other taxes to be paid.
On the other hand if upon completing the number of years and tenant decides not to buy the house, the seller can decide if he or she would still allow the tenant to stay or leave and look for another tenant or buyer.
In this case, the advantage is to the seller because he or she can keep all the rental fees and look for another client. The only problem would be if the tenant leaves and leaves the house with a lot of things broken.
It is important for a seller to be very critical in searching for a prospective buyer or tenant. Most sellers usually choose as tenants those who do not have pending credits or those who are not taking their property as an option but more of a choice.
They usually go for long term clients or tenant who would take care of their house as new homeowners. As much as it is important for a seller, more so for a buyer who would invest into renting the house for several years.
Buyers should be very careful in dealing with trustworthy sellers. They must be able to not only love the place but see themselves living in the house they are renting. They should be renting because of wanting to buy it in the future.
This is when it becomes more useful since they are given more than enough time to earn for a down payment or for paying the extra cost of the house they are currently in.
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