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How Does Rent 2 Own Work?

First, it is important for you to know that there are numerous terms used to describe a “Rent 2 Own” transaction..

The most common are:

  • Rent To Own
  • Lease Purchase
  • Lease To Own
  • Lease Option

unable to sell their home, home values fall, short sale, foreclosure, rough real estate market, good seller candidate, need to sell, losing equity, debt relief, lease option sale strategy, owner financing, contract for deed, lease option to sell, lease to sell, lease sell Basically, the way it works is you lease your property for 12-36 months with a traditional lease agreement, AND at the same time you also sign an option & purchase agreement to sell your home to your Rent 2 Own Buyer.

The Option & Purchase Agreement states the purchase price you and your Tenant Buyer agree to.

The agreement also details the period of time you, as the Seller, are willing to give your Rent 2 Own Buyer to purchase your home. This length of time is called the Option Period and it is usually 12-36 months, but can be longer based on what you negotiate. At this point, it is then the Buyer’s responsibility to qualify for a home mortgage to purchase the home before the expiration of the Option Period.


What If Tenant Buyer is Unable to Qualify In Time?

If your Buyer is unable to qualify to purchase the home before the end of the Option Period, one of two things usually occurs:

  • The Option to Purchase Contract expires and you will no longer have the legal responsibility to sell your property. Further, your Rent 2 Own Buyer will forfeit any rent credits and the option fee paid to you.
  • The Option to Agreement will offer you the ability to extend the agreement for a set period of time.

Rent Credits

Rent credits are common with a Rent 2 Own home.

This fee is generally credited towards the purchase price of the home.

Rent Credits

Rent credits are common with a Lease Purchase/ Rent to Own home.

It is the portion of rent that is credited toward the purchase price each month that the rent is paid on time.

The monthly rent credit amount is another one of those negotiable points between you and your Rent 2 Own Buyer.

Rent to Own Road Map

Using the Rent 2 Own approach is an extremely powerful strategy that anyone can use to sell their home, even in this poor market.

Many Buyers are searching for their dream home. Once you are serious about using the Rent 2 Own strategy to sell your home, merely click on our Rent 2 Own Buyer’s Rent to Own Road Map to understand the pathway that will bring you and your Buyer to a successful closing.

Testimonials

  • Our experience with Twin Cities Rent 2 Own was fantastic. Not only did we end up with the house of our dreams in a location we love, we had great personal service from not just one member of the Rent 2 Own staff, but the entire team. We felt listened to, respected, and our needs and wants were given personal attention from Shaun.He was responsive, very knowledgeable and really fun to work with. When we needed input from others at Rent 2 Own, they were there on weekends, evenings and whenever we needed them.

    - Leah
  • I would like to thank Twin Cities Rent 2 Own for the outstanding job they did in placing the right buyers into one of my rental units. Shaun & Glenn were very helpful in walking me through the whole process of what to expect, timelines for marketing & executing a deal, as well as clearly laying out the numbers of why it is a better deal in this market to go with a rent to own sale versus a traditional sale. I was impressed at how quickly they had the property listed on their website, the MLS and had signs canvassing the neighborhood to market this property. Shaun took care of all the showing and stayed in constant communication with me through the whole process.

    - Jay L.
    
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