Offering your home as a rent to own? Learn how to structure the lease and option agreements.
So you finally realize your home isn’t going to sell in this market at your list price. Also, you might be trying to avoid renting your house because you know you will be back in the same place in 12 months after your tenants move out.
So what are your options?
Consider offering your house as a rent to own home.
Offering your home as a rent to own can be a wise decision. Taking the time to structure the agreements correctly is something a real genius would do!
Signing the documents
Typically when you rent your home you sign a standard lease agreement with your new tenant.
Using the rent to own method you sign a lease agreement and an additional document called an option agreement. Many sellers make the mistake of combining these agreements instead of creating two separate documents.
Don’t Do This!
If you somehow choose the wrong tenant because you didn’t qualify them correctly, you could end up in court trying to evict the tenant.
The last thing you want is a judge who misinterprets your paperwork and makes you foreclose on the tenant. This could take years in today’s busy foreclosure courts.
Just use two separate documents!
Stay tuned for the next tip on how to rent to own your home.