Pushing 30 or already there? If so, you’re probably getting asked from family and friends, “When are you going to get married, have a child, and buy a house?” You’re own your own for the first two, but we can help in the housing department. When it comes to home buying, Millennials fall behind where past generations were at their age. This is mostly because of affordability issues. Wages, until recently, aren’t going up even though costs are. Because of this, more Americans are renting more than any time in recent history. For people who want more space, freedom, and privacy than an apartment offers, house for rent to own is a great option.
How it Works
Typically, the property owner and renter will sign a contract agreeing to rent the property for a length of time, generally one to three years. During this time, the renters will pay above-market rent, with the excess rent being added to a down payment for when the contract ends. The contract usually sets a price for the home at the termination of the lease.
The Benefits of house for rent to own
Many people shop for houses for rent to own as they are looking to buy a home. They are starting to realize that buying a home is not a sure thing, but still want to be a part of the American dream. A rent to own deal offers buyers the chance to settle into a home while they save for the down payment. This will improve their credit score, and help negative factor(s) on their credit score fade away.
What’s included in a rent to own housing contract?
Since multiple issues need be addressed, both the buyer and seller must have the contract looked at by a lawyer. The terms of the lease agreement should include:
- Rent amount
- Length of lease period
- Who will pay utilities, maintenance, and repairs
- Who will pay for property taxes, insurance and homeowner fees
- Rent credit for down payment and how it will be held until the time of purchase
If you’re interested in houses for rent to own and want to get an excellent start, contact the experts at Applegate Properties. We’ll get you the information you need and more.