4.3 min read
You might have heard about the benefits of rent-to-own homes. They allow you to build up equity while you’re still renting. They then give you the option of purchasing after your lease is up. It can be a great alternative if you have a poor credit score or can’t afford a down payment.
The only problem is that you have no idea where to find rent-to-own homes.
In this article, we’ll give you some resources to help you find a rent-to-own home for yourself.
1) Find a Real Estate Agent Who Specializes in Finding Rent to Own Homes
Chances are, someone has already done the work for you. Real estate agents spend most of their time familiarizing themselves with the local real estate market, fielding offers, showing houses, and negotiating for better prices.
Then, an experienced real estate agent likely knows a thing or two about rent to own, and he or she can point you in the right direction when it comes to finding a rent-to-own home.
More importantly, an excellent real estate agent can help negotiate an exceptional rent-to-own contract on your behalf. At the very least, he or she can show you what to watch out for. Sometimes rent to own contracts force you to forfeit your extra rent payments at the end of the lease if you don’t exercise the option of buying the property. There are also some other pitfalls -- and a good agent can steer you away from them.
2) Convince Your Landlord
This will change from situation to situation, but you might be able to convince your landlord to enter a rent-to-own agreement.
Why? What’s in it for them? This is a perfect option if you know that your landlord is already looking for a way to sell the property. It’s an even better option if you know your landlord only has one rental property, and he doesn’t like being a landlord.
Maybe your sink is backed up, and you can tell your landlord despises the thought of even taking a look at it. Now might be a good time to float the option of rent to own: You can take care of all of those little repairs that your landlord hates doing, and you pay a little bit extra in rent for the time being -- and your landlord eventually gets rid of the house without having to put in any more work!
This could potentially be a win/win for both parties.
On the other hand, your landlord might have no interest in a rent-to-own contract. It’s possible he or she likes doing the handiwork, and the property is a money-maker. Either way, if you keep your ear to the ground, you can probably find a landlord somewhere in your area who is open to the idea of a rent-to-own agreement.
3) Find a Seller with a Listing That Has Been on the Market for a While
Alternatively, you could contact sellers directly. If there’s a nearby listing that hasn’t sold in 150+ days on the market, you can probably get the sellers and float the option of a rent-to-own agreement.
They can collect some extra money on the house and possibly sell it at the end of the agreement. It’s another win/win situation.
The thing is, though, that many people are unfamiliar with rent-to-own contracts, so they might be a little hesitant to enter this type of agreement without an expert to help them work out any potential issues.
4) Search for Rent to Own Homes Near You
Sometimes, there are already rent-to-own programs in bigger cities across the US. This way, instead of working out the issues yourself, you’ll work with an agency that can help you set up a rent-to-own agreement.
You won’t have to worry about potentially making a costly mistake with the contract because everything will be spelled out for you -- and the agency likely carries some brand name recognition with it, making it easier to convince sellers and landlords to go this route.
Conclusion: How to Find Rent to Own Homes?
If you’re looking for how to find rent to own homes, there are many possible avenues:
- Find a real estate agent who specializes in rent to own (or is at least familiar with it).
- Convince your landlord to enter a rent-to-own agreement (best if you know your landlord wants to stop being a landlord).
- Find a listing that’s getting old and try to convince the seller.
- Or, search for rent-to-own homes near you through an agency or specialized listing service.