If you think you are a good candidate for the Rent-to-Own program, you should be aware of the pros and cons for both the seller and the tenant. It is very important to know what they are before signing contracts. (i) the lease agreement contains a binding purchase and sale clause; A rent-to-own agreement is only as good as the people involved in setting it up. Some may have gone wrong, but I`ve heard a lot of horror stories that are also bought and rented conventionally. Does that mean we shouldn`t be at home? No no. Read your contract and ask/negotiate all the durations with which you have a problem. Go away if you can`t live with it. The phrase „rent to own“ is strangely complex. What at first glance may seem like a simple rental agreement is a pet in its own right.
Source: Canada Mortgage Source powered by Invis. June 2016. There are two main types of leases: the rental option and the purchase of leasing. So it seems that a clean lease-for-rent agreement can be extremely profitable for the right investor. All that matters is an important reflection. To make a successful lease, you need to find the right tenant. It looks like it`s profitable for sellers, but people I know who have been sold this way have usually done it to sell a building that they agree with for a while. Why can`t Rent-to-Own be what it seems? Rent until you own.
So, if you want to buy a house that is normally $139,000 or something like that, you would give $1000 to the homeowner (then you would have to pay your own hydro, etc. per month for 12 years, then the buy-out is $144,000 and at the end of the 12 years it`s yours…