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How exactly does a rent-to-own house deal work for the renter?
I keep finding articles geared toward the home owner putting their house up, but what exactly are the pros and cons for a renter? And how exactly does it work?
Public Comments
- It is however the renter and owner agree, but what is important is that an attorney look over this agreement before you go into it. There are many pitfalls, and you want to be sure its a fair agreement. Usually there would be some money put as a down payment, an agreed price for the home, then part of the rent would be credited toward the actual price of the home.
- You might pay $1,000 a month in rent. The owner agrees to accept $300 per month as a credit towards your final purchase. After 3 years, he has $10,000 of your money held for you. If you decide not to buy it, you walk away. The problem comes if you agreed to pay $100,000 and the value drops to $70,000 in one year. You already agreed to pay $100,000.
