Advantages and Disadvantages of Rent-to-Own Homes
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Advantages and Disadvantages of Rent-to-Own Homes
Some homes for rent include a rent-to-own option that provides advantages and disadvantages for renters. One advantage for those who would prefer to buy but have bad credit, is that rent-to-own houses or condos provide an option to still purchase a home.
A home for rent-to-own does have some disadvantages. Renters must be aware that they must pay their payment on time or the rent-to-own home agreement could void the rent credit toward ownership for that month. If the renter decides to walk away from the rent-to-own home, they may lose the option fee and all their rent credit money. While a regular rent option may put repairs under landlord rights, a rent-to-own relationship puts those repairs under tenant responsibilities.
The homeowner of the house for rent-to-own may experience advantages and disadvantages. If home values are decreasing, a rent-to-own home agreement can lock in a higher price from the beginning. The renters are generally interested in treating the home as their own so they will take better care of it. However, if a potential buyer wants to buy the house for a higher price, the rent-to-own landlord must abide by the original contract with the renter.
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| Kristle Jones |
