For Rent in 77375>Question Details

Aj, Home Seller in 77375

Rent vs Rent to Own?

Asked by Aj, 77375 Sun May 17, 2009

What are the advantages/disadvantages of Rent vs Rent to Own from a seller's perspective??

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While I agree with the answers given before, you should know that in Texas that any type of lease/purchase agreement has potentially serious pitfalls. The most dire of these is the complete loss of your home due to some minor issue such as not notifying the tenant when you change YOUR insurance company. Please seek out a good real estate attorney before entering into such an arrangement. The property code in Texas is decidedly for the tenant!

John Axt -
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0 votes Thank Flag Link Wed Aug 25, 2010
Rent to own is a concept, and I agree with the previous answer, your biggest advantage is that the tenant will take better care of something they believe is theirs. Lease agreement and purchase agreement are separate, I'm not aware of a lease to own agreement, in TEXAS. First get a solid lease agreement. Then do a purchase agreement, with a long option period. The disadvantage is that you're agreeing to sell your property, for a specific price, sometime in the future. You can't sell it to someone else during this option period, and if your renter doesn't buy, you'll keep the option fee. Down payments won't be made until the renter agrees to move forward with the purchase agreement. In most cases the renter can't qualify for a mortgage and there's no guarantee this will change during the lease term. I recommend getting a decent option fee, in exchange for the right to purchase, in the future.
0 votes Thank Flag Link Tue Feb 2, 2010
The advantage of rent to own is better for a seller because the tenant will take better care of the house verses just renting. From my experience as a landlord, renters don't really take good care of the rental property because it's not theirs. Giving renters an opportunity to own, gives them a sense of ownership, therefore making them more responsible and accountable for keeping the house in good repair/condition. Another advantage of rent to own is that you can ask for a down payment.
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0 votes Thank Flag Link Wed Nov 11, 2009
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