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You will usually pay higher prices with a rent-to-own arrangement. These inflated prices are due to your rent money going for two different things, as well as miscellaneous fees that the tenant will be responsible for. You could also start out paying a slightly lower price and have it go up each year. Some clever buyers have paid inflated rents for a short period of time before coming into a "sudden windfall" to buy the property early, though contracts are typically created by the seller with the seller's interests first.
Quick Relocation – If you need to relocate for a job transfer or other involuntary reason with limited time, a rent-to-own can let you take advantage of the best fit you can find in a short timeframe without locking into a 30-year mortgage. Another example would be a move into a more desirable neighborhood or school district for your children. You have to weigh the advantages of rent-to-own over a straight rental.
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These consequences should be clearly outlined in the rent-to-own contract. If a tenant misses payments, the seller can choose to start the eviction process, and the buyer will forfeit any payments that they have made so far, including the money that is in escrow. Depending on which type of contract you're locked into, there may be legal consequences. If you've chosen a lease option, you have the choice to opt out of buying the home without any lasting consequences. However, if you've chosen the lease purchase, you are required to buy the home at the end of the contract. If you don't, the seller could start legal proceedings for breach of contract.
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RentToOwn.org is one of the nation's leading providers in rent-to-own data. We have the most up-to-date, accurate listings of similar sites and you can count on us to provide only the most relevant and legitimate rent-to-own opportunities. If you register for a trial membership, you will gain access to even more home data and features. Contact us with any questions, and we look forward to helping you find your dream home.
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