Re: Rent to own - Landlord Forum thread

Re: Rent to own by Eloise on June 4, 2012 @21:59

99% of the Landlords in this forum will advise you otherwise, I have been involved with a Lease to Own option and in my particular experience it did not work out for me because I ended up moving to another state, I would not be opposed to doing one for my property some day, considering the opportunity presented itself, I would personally hire a lawyer to draw up a lease as there are no black and white type of rules regarding these transactions as they are a mix of two things and can get very messy, expensive and complicated! BUT, to answer your question, the experience I have with rent to own went like this:

- Set a "sale price".
- Come up with a "down payment"
- Deduct this down payment from your "sale price"
- Write up a LEASE with the following:
-$xxxx per month
-$xxx additional per month, this moneys are applied also to the "sale price" at the end of the lease. {in this case, it was 2 years} If the renters for whatever reason do not purchase the property, this money becomes non-refundable.
-There was a clause created regarding deadline for the renter/buyer to have or have approved financing for the property {sale price minus extra payments towards sale price}.
-Until THAT date that they buy the house, YOU are the owner, they are the Tenants. So every responsibility you have as a landlord will continue to apply, including taxes, insurance, wear and tear items, maintenance issues etc, all you. Remember, you are the lawful owner of the property until transferred to their name, so you must have the proper legit insurance and your name is on the taxes, any defaults would be under your name, so, this is not something you want anyone else in control of.

Well, hope that helped, in short, I'd contact a lawyer to draw up a lease with these items in it and I'd continue to pay for the taxes and insurance as until the sale date, you are the owner.

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