Rent-to-Own Agreements

If you play your cards right, I may just sell you the place.

Analyzing the benefits and setbacks of a rent-to-own option with investment properties

A rent-to-own agreement is essentially a 2-in-1 agreement which includes a standard residential tenancy agreement with a purchase option addendum. Typically the agreement includes a clause wherein the landlord/investor saves a portion of each monthly rent payment to be used by the tenant if and when they purchase the property.

Rent-to-owns can provide major benefits to both landlords/investors and tenants/buyers. A few examples of investor benefits are:

  1. Above market-rent can normally be charged
  2. Attracts good quality tenants who have a sense of ownership in the property.
  3. Future purchase price predetermined – allows for easy return on investment calculations

If you ever have any questions about rent-to-own agreements, any at all, please don’t be shy. Give me a call or send me a text email. I am always willing to chat real estate over a cold beer or strong coffee.

Brock Frost