Advantages of rent with option to buy for owners

Homeowners also benefit from rent-to-own , especially when housing price declines are expected. This may be a good way to sell your property at a time when demand stagnates. At Housfy we are experts in all types of real estate operations, therefore, we explain below all the advantages of this type of rental. Rent your apartment and forget about worries 0% late payment. We take charge if the tenant does not pay. GET INFORMED FOR FREE How does rent with option to buy work? Its operation is very simple . The tenant lives in your apartment paying a monthly rent and can decide, after a while, if he wants to buy the property. If he does so, the monthly payments paid may be deducted from the final price. The rental contract with option to purchase must address three basic information: The purchase and sale price , which cannot be modified later. The period to execute the purchase . After this period, the opter loses his right of option. A premium , not mandatory but recommended, that the tenant pays to the owner as a guarantee for the future transfer. Advantages of rent with option for owners It seems that renting with an option to buy offers innumerable advantages for the tenant : they have much more time to find a good mortgage loan, they pay as if it were a rental, although they are really financing the purchase of the property little by little. But the owner also makes a profit with this type of rental.

Good option before a possible price drop

The purchase price cannot be modified once the rental contract with option to purchase is signed. If the market points to a decrease in the price of housing, this type of contract plays a good role, since it can guarantee you a higher sales price even if the market subsequently collapses. Furthermore, in times of stagnant demand and with the Euribor skyrocketing, the buyer will appreciate a rental with an option to buy, as it is perhaps the option that will require the least effort to acquire a property. Therefore, you will have more opportunities to sell your apartment in the face of a large demand that decides to wait. The process of buying and selling an apartment is usually longer than that of renting. With a rent with an option to buy, the owner obtains profits faster for the apartment without waiting months to formalize the purchase. 2. The tenant will take care of the apartment Sometimes landlords worry about how tenants may treat their property during a rental agreement. When there is an option to purchase, the tenant is supposed to take care of his future home , even if he doesn’t end up buying it. 3. Tax advantages of rent with option to buy A landlord who chooses to rent to own may enjoy tax advantages.
5. The premium as guarantee

Although it is not mandatory, it is highly recommended to agree to pay a premium that gives you more guarantees that the interested party will buy the home. This is a very good insurance against non-payment of rent , as it is usually higher than the amounts paid under the deposit. In addition, the potential buyer will appreciate a premium because they are usually lower than the down payment that banks ask for when applying for a mortgage. And in case the purchase is not finalized, the owner keeps the premium, so you ensure more liquidity than with an ordinary rental contract. You can also opt for a rent with option to buy without down payment , but the uncertainty about the future acquisition grows the less premium money you request. How do I put my apartment for rent? If you have come this far, it is because you are convinced of putting your apartment for rent. If not, you are not alone! It is best to consult the comprehensive rental management services of a professional company who can help you find the ideal option for you. At Housfy Rentals we have the tools and experience necessary to advise you so that renting your home is an absolute success.