Renters and sellers have their share in the benefits if rent to own homes.Rent to own process of selling the property has quite some advantages. Explained the following paragraphs are some of the advantages of rent to own homes.
The first advantage that the buyer gets from rent to own homes is an opportunity to know the condition of the property. Potential purchasers will have an opportunity to access the improvements that need to be done in the house.When the potential buyer find the conditions unbearable they have an option of terminating the agreement. By first using the home before buying it will help the renter get familiar with what may need to be done about it. The buyers will have an opportunity of familiarizing themselves with the surrounding areas.
Another advantage of rent to own homes is that the purchase price is fixed from the beginning.The terms of purchase being the same throughout means neither party has powers to do alterations. No matter what the terms are no one can make changes. After agreement, no one has control over any circumstance like fluctuation in the value of homes.The contract benefits the seller because the amount he receives does not change even if the value of his property declines.
Rent to own homes are price sensitive to seller as well as it is to buyers. For instance, no down payment is required to be paid by renters. The renter only needs to pay the rental deposit agreed.In cases where no tax is required rent insurance will be paid which is cheaper than homeowners insurance. Where there is no tax amount to be paid the buyer can save money to buy the house.The owner of the home does not have to advertise their home.The seller already has a ready buyer of is home. Real estate agents are removed from the process, and this makes it cheaper to sellers. Real estate agents are paid a commission which can be avoided when you engage a rent to owner buyer.
To close with everything on earth has a positive and a negative effect. If the renter decide to terminate the contract for any reason they will not recover any thing they paid for. The renter does not have any rights over the property until he buys the home permanently. When the value of the property goes down the buyer will lose because the contract cannot be changed. The landlord does not enjoy full benefits of his property because the amount is paid in bits. The owner is disadvantaged because they are not certain that the renter will purchase the home.In case there is an appreciation in the value of the property the seller will be at loss because he cannot change the contract.