This is a question I get from homeowners who have heard about our rent to own program. They see the rent to own listings and ask if listing their home is the right choice for them.
For many homeowners the idea of renting your home instead of just selling it is a decision made after months of trying to sell your home on the MLS.
Renting or leasing your home is a great idea for offsetting your mortgage payments. This is also a good decision if you owe more than your home is currently worth.
But, if you are renting your home because you are unable to wait 6-12 months while it sits on the market draining your finances, then I would suggest the rent to own program.
Proceed With Caution
- If you do not qualify the tenant/buyer correctly the deal WILL NOT WORK.
- If you sign an option agreement for more than your home will appraise for in 12-18 months then the deal WILL NOT WORK.
The last thing you want is for someone to live in your home for 12-18 months while working on their credit and after they are qualified to purchase the deal falls apart because the home is overpriced.
When does it make sense to rent to own your home?
- You need to sell but can’t afford mortgage payments for the next 6-12 months while on the MLS.
- You are not upside down on the home.
- You are realistic about the current housing market.
- You need the home occupied within the next 30-60 days to cover your mortgage.
If you owe more than your home is worth consider leasing until your property value rises.
Rent to own house listings also have a MUCH larger pool of buyers to work with than you have in the traditional real estate market.
The current economic crisis has made it more difficult for buyers to qualify for a mortgage. These same buyers would have qualified just a few years ago.