Cons: 1) Rent to own deals are rarely successful. 2) Why is the renter a renter? bad credit? high debt to income ratio? Renters are renters for a reason. Is it realistic to think that will change with this particular renter? 3) You will have wasted all this time renting to someone when you could have sold it.
I have a story for you about a couple who was having their home foreclosed on and needed a new home someone took a chance on my buyer and now they actually have a home to call their own.. they really wanted this home more than anything and it was they only way it was possible. The seller really was not interested in this option at first but it has worked out for everyone for the best. Does it always work out this way ,no but for my client it has, This I consider a pro.
The renter usually pays higher than market "rent" for the home and can be expected (depending on the contract and your states laws) to maintain it just as though they were the owner. The upside for them is that they usually have locked an option to buy the home at certain price (again depends on the contract) and if the market has gone up they can exercise that option. Downside for the seller is that they are locked into that price as well.
Hope that helps. You should be aware that your states laws could affect what you could include in that agreement. Consult with an attorney about the laws of your state.
Tim Moore......... I believe Martha asked: "What are the pros and cons of rent to own?" NOT...."Can you give me your personal feelings about how much you dislike rent-to-own's." Give her unbiased information & facts and let HER make the best decision she can with the information she obtains.
At least Sally was professional enough to answer the question from both the pro and con side. As well as Anna who seems to give professional answers on a pretty regular basis and Ms. Tina LeBlanc who gave a very nice unbiased answer to the question.
You and many other Agents consistently give your opinions or tell stories about things you've "heard", yet you provide no facts or personal experiences to back it up. I consistently ask you and other Agents on these posts how many rent-to-own deals you have been PERSONALLY INVOLVED WITH.
********You've even responded to another question referring to rent-to-own's with.... "I get questions about them all the time but luckily have not had to do one myself."!!!!!!!!!!!!!!!!!!!!!!********
Who would ever want to take advice on something you or someone else has never done?!?!?!? That would be like me going down to NASA and giving advice on the angle of re-entry needed for the Space Shuttle.