Rent to own, also called ‘lease to own’ means having a rent combined with an option to purchase a property within a specified time period at an agreed-upon rate. This period is usually 3 years or less. Property borrower is responsible to pay 1 – 5 % of property rate (option fee) which is endorsed to the total purchase rate. He actually pays rent and an additional rent premium which is also credited to purchase price. If purchase option is not implemented properly, the buyer may lose both benefits, option fee and rent premium.
Rent to own property is an excellent option for those who can not afford to mortgage loans or do not qualify for loans to purchase their own properties. In rent to own process, you have option to negotiate an amount of your rent paid over specified time as a down payment on property buyout. This is a feasible opportunity for those unable to make down payment. Through rent to own property process, you find a good property with agreeable terms with land owners.
Though there is not any central database available that provides all rent to own properties listed, it often becomes really hard to locate a rent to own property. You have to struggle a lot to search landlords who work in rent to own property business. Most of the rent to own property opportunities are not listed in any listing services or anywhere and this fact makes it more tough how to find rent to own properties. Sometimes listings are available, but the agents are unwilling to illustrate them. Reason is that, in case of a rent to own property, they have to put their commission back for a year or longer period until the property is sold.
Are you worried how to find rent to own properties through a quick and reliable source? There are so many resources available that provide you services to easily and quickly find the rent to own properties in your area instead of spending weeks to find property meeting your specific search criteria.
• Advertise through local newspaper or put your ad in real estate classifieds to make people know about your requirement for rent to property. Even in age of internet, still there are some good rent to own properties that are available only on newspaper. Leave your contact information with your inquiry so that the land owner can contact you directly.
• Talk to your friends / family / colleagues that can probably make or find some rent to own listings meeting your search criteria.
• Visit the relevant free websites and local community services that provide listings. Though it may take longer time to find a good opportunity and hard to find a reliable land owner, but it saves your time and efforts. It prevents you from driving hundreds of miles.
• Contact the agent that deals in rentals and see if he can assist you finding your requirement. Rental agents always keep their finger on the pulse of market so they can help you best to know such opportunities.
• Keep an eye on the yard signs when you go through the ways. Usually people don’t spend money to advertise their listing, so they put a yard sign ‘rent to own’ outside their property for people to see and avail it.