For Rent in Brooklyn>Question Details

Lucilesphere, Renter in Brooklyn, NY

How does rent-to-own a home work?

Asked by Lucilesphere, Brooklyn, NY Mon Apr 1, 2013

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Answers

4
Why are you considering using Rent-to-own?

Josh Marks
Joshmarksmortgage.com
Jmarks@wintrustmortgage.com
773.303.0033
0 votes Thank Flag Link Fri Apr 19, 2013
Usually you pay rent + an additional amount towards your sales price. I've never seen one work out very well.
0 votes Thank Flag Link Fri Apr 19, 2013
Rent-to-Own? In my opinion of 20 years in the business, it's not a great idea for either party.

If you are the renter, and you are in contract to make a future purchase, what happens if you discover that there is a non-stop barking dog next door....and everything breaks in the house? You won't want to move forward with the purchase.

If you are the seller, and you are in contract to sell it to a renter, what happens if the market goes up and the sale price you agreed to is now below the market? You won't want to move forward with the purchase.

Best advice: Have a rental contract with a "First Right of Refusal" for the tenant to have the opportunity to purchase at the end of the lease. Keep the situation simple..... and your options open.
0 votes Thank Flag Link Fri Apr 19, 2013
Here is a blog post that I found useful: http://www.trulia.com/blog/scott_godzyk/2010/06/rent_to_own_…

Hope this helps,

Ali, Community Manager
0 votes Thank Flag Link Tue Apr 2, 2013
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