Everything About Rent-To-Own Options All Landlords Must Know

Rent to own is a potent means of allowing renters to buy or agree to buy a certain residential property by paying a part of the total value of the same in the form of rent. It is not usually considered a mainstream option of buying homes, but works very well for people that do not wish to take a home loan at the moment or do not qualify for the same owing to very poor credit scores. Rent to own criterion may or may not feature in standard residential lease agreement forms. This makes it very necessary for landlords to review the forms well before making their property available under this scheme. Please visit this site to ​​get a sample rental agreement template.

Advantages of Rent-to-Own for landlords –

Rent to own agreements are usually very easy to make without the need of any professional assistance. Downloading a rental property lease agreement form from dependable online legal sites that contains rent to own features is all that it usually takes. More often than not, reputed sites offer these forms free of cost and also allow added features of storing the forms in the cloud while introducing changes to it as and when needed.

Besides creating a foolproof agreement, certain other advantages of rent-to-own include…

• Attracting more numbers of buyers especially if property has not been selling for a while
• Earning a regular monthly income with the option of asking for a higher sale price at the time of purchase of the property
• A lump sum will already be recovered if the price of the property falls in future

Taking a closer look, it can be said with all certainty that rent to own has more advantages in favor of the landlords than the tenants.

Possible drawbacks –

Irrespective of the faultlessness of landlord tenant lease agreement form for rent to own, there are certain disadvantages that should be understood before entering into the agreement.

Firstly, there is no guarantee that the tenant will buy the property at the end of the term, and they are legally allowed to do so.

Secondly, lump sum money that is earned with proper sale of property is considered a more fruitful income than slow rental income.

Thirdly, if the price of your property falls and the renter does not buy the house at the end of the day, you may in for greater losses.

To be on the safe side, it is necessary that the landlords review their situation wisely before saying yes to rent to own.

Read another blog about custom agreements here at - http://customagreements.blogspot.com