If you have had trouble qualifying for a home mortgage, a rent-to-own agreement might be the answer for you. This is an agreement between you and a homeowner to rent a home with the option to purchase it when the lease period expires. The homeowner works with the tenant to come up with an acceptable rent amount and an additional fee to pay each month. The rent is what you pay the owner to live on the property, while the additional amount will go towards the purchase price of the home. Different rent-to-own agreements have different responsibilities. As both the tenant and buyer of a home, there may be responsibilities for which you will be held accountable.
Maintenance Responsibilities Of A Typical Rent-To-Own Tenant
Maintenance responsibilities should be decided upon when you enter a rent-to-own agreement so there are no questions when something needs to be repaired or replaced. In a typical rent-to-own agreement, the tenant would be responsible for routine maintenance on the property while major problems or repairs would be the homeowner’s responsibility. Routine maintenance can include mowing and other lawn care activities. Other basic responsibilities are painting and calling someone for repairs if they do not require a major replacement.
Contractual Rent-To-Own Agreement Responsibilities
If the selling prices for homes change during the time of your rent-to-own agreement, you will still be responsible for the agreed upon purchase price. This factor can be either an advantage or disadvantage depending on how the housing market fluctuates.
Another factor that could change during the lease period is that you may decide you want to purchase the home before the lease time is over. The homeowner will not have to agree to selling early, so you may still be responsible for fulfilling the established rental period. Unless the seller decides they are willing to sell early, you could risk losing the extra money you have paid against the purchase price.
Other Tenant Responsibilities In A Rent-To-Own Agreement
Additional responsibilities may come up as the rent-to-own agreement is being written. You want to be sure you understand all the terms being set while negotiating with the seller. If you don’t understand a term or condition, check it out before making the agreement. Make sure you work on repairing your credit during the lease agreement period so when financing is required, you don’t risk losing the home.
Not Interested In A Typical Rent-To-Own Home? There Is Another Option…
IPS Amarillo offers homes through a lease with purchase option. This type of lease is perfect for people that aren’t sure about buying a home, but also don’t like spending money on rent. If you choose to pay an option fee, it will reduce your monthly payment. If you don’t want to pay the option fee, you will get a monthly credit towards your home purchase. Learn more about our Lease Options today!
We have many Available Properties in Amarillo and the surrounding area. For more information about the homes we offer, give us a call at (806) 220-6816 or Contact Us by email. You can also visit us in person at 5701 Time Square Blvd. #340 in Amarillo, Texas.