Selling via rent to own can be an excellent option that many Nuevo homeowners fail to consider. Learn more about how the process works and what benefits you will receive in our latest post!
A rent to own agreement can be an excellent way for a Nuevo homeowners to sell their house fast. The financial benefits are very rewarding as is the security of a regular income from the property. That said, there are some things a seller should be aware of when using a rent to own agreement to sell a house fast in Nuevo. Keep reading to learn what they are and how you can create a rent to own agreement that will protect your best interest while helping you to sell your house fast in Nuevo!
While the odds of your potential buyers defaulting on the agreement is relatively low, you’ll need to know what to do if it happens. Until your potential buyer is able to get a traditional loan and pay off their debt to you, the property will still be in your name. Much like a bank, if your tenant isn’t paying, is causing damage to the house, or is somehow defying the agreement set in place, they are running the risk of foreclosure, while you will be able to retain full ownership, holding on to the down payment.
Creating A Legal Contract
Your rent-to-own agreement could be a simple one or very lengthy depending on the items you need to cover. The most important clause is that it needs to be legally binding – whatever you include in your agreement needs to be enforceable under contract law.
If an issue arises between you and your buyer, having an officially signed document can help resolve the problem quickly. If your buyer refuses to abide by the terms of the rental agreement, you will have proof that he or she breached their contract with you. This will put you in a strong position if litigation is necessary.
Finding The Right Tenants
Using a rent to own agreement opens up a whole new world of potential buyers. People who couldn’t quite qualify for traditional funding due to a low credit score or lack of down payment may be able to meet the qualifications set forth in your agreement. There are many great buyers out there who are being held back due to a blemish on their credit report. The key is to find the buyers of genuine character who will follow through on their obligation to you. Once the right tenants are found, you will create a win-win situation for all parties involved. Keep in mind that there is a reason traditional banks had denied them in the past, so be sure to do your homework on your potential buyer before entering into an agreement.
Being Back Where You Started
While it may not happen often, you do run the risk of your tenant being unable to buy at the end of the lease term. This means you will still be the owner and can either try to list at this point or enter into another rent to own agreement. While this may seem frustrating, you can actually come out ahead from a financial standpoint. Sure you didn’t sell the house, but you were able to collect a higher than average rent plus a non-refundable down payment for your troubles. Who knows, the market may rise dramatically during this time and you may be able to sell for even more than you would have before the agreement!
Selling via rent to own in Nuevo can be very beneficial to homeowners looking for a way to quickly make money off of a property they own. Our team can help you understand the risks and the reward so you can make the selling decision that is right for you!