3 Essential Benefits of a Rent-to-Own Real Estate Strategy

With Rent-to-Own Real Estate there a 3 main benefits

Get the benefits of owning a home without the risk associated with upfront costs! Learn the 3 main benefits of the rent-to-own-real estate strategy.

Rent-to-own real estate is an attractive option for people who may not have the financial means to purchase a home outright or be able to qualify for a high mortgage. It allows them to enjoy the advantages of homeownership without having to face the risks associated with upfront costs.

It can also be a great option for real estate investors that are just starting out, just ask real estate investment expert Ron Neal. 

Now, in this article, we discuss the 3 main benefits of rent-to-own real estate.

1. Flexible Contracts: 

Rent-To-Own allows for flexible contracts, giving you more control over how long you’d like to keep the property. They are usually far more flexible than traditional mortgages, allowing you to customize the duration of your accounting. This gives you the benefit of extending your rental agreement if you’re not yet ready to commit to a long-term contract or shorten it if finances allow. You can also opt for short-term contracts if that’s more in line with your goals.

The best way to get market insights and find great deals is by talking with real estate professionals like JKS Realty and Property Management.

2. Lower Upfront Costs: 

It’s not necessary to make a large down payment in order to obtain a rent-to-own property. With rent-to-own real estate, you’ll pay a much lower upfront cost than you might expect. Instead of paying the entire purchase price in advance, most rent-to-own agreements require only a small option fee and the first month’s rent. This makes high-end properties accessible for those with limited or difficult to access resources without having to secure a large loan or mortgage. You can also opt for an agreement that does not require an option fee.

3. Easier Approvals: 

Qualifying for a rent-to-own property is often easier than applying for a traditional mortgage since typically the credit score requirement is lower and the tenant does not need to qualify for a loan.

With traditional loans, the bank is especially interested in good credit history and more evidence that you’ll be able to make future payments on time. However, with rent-to-own properties, the lease agreement may have different requirements such as proof of a steady income or job, depending on the agreement. This makes it easier for those who may not qualify for traditional mortgages to finally own their own home.

You can also work directly with the homeowner and bypass traditional bank financing.

Real estate insiders like Karie Seiss, a Victoria BC real estate agency owner, say that this may be the best way to take advantage of the current real estate market and your ability to get into your dream home sooner rather than later.