What do we mean by "Rent to Own"?


What do we mean by "Rent to Own"?
By Scott Rogers • March 27, 2009
The problem with "rent to own" is that everybody means something a little different by it. Here are some examples of what someone might mean when they are talking about a "rent to own" scenario: Owner won't sell the home to anyone without checking with the tenant first to see if they want to buy it (first right of refusal) Owner and tenant decide on a sale price for the home at the start of the lease, and the tenant has the right to buy the the home for that given price at some future date. A portion (or all??) of each rental payment will be credited back to the purchaser if and when they buy the property. Tenant pays a large nonrefundable deposit at the start of the lease, which is credited back to them in its entirety if they purchase the home. Any combination of the scenarios above, for example no fixed price is set, but a portion of each rental payment will go towards the eventual purchase price. If a landlord and tenant are both generally interested in pursuing a rent to own scenario, the first thing to talk about is what each party means by "rent to own." It can be a win-win situation for property owner and tenant/buyer, but you'll need to first make sure everyone is on the same page. Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 22, 2024 (unless otherwise noted).
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