Profile picture for FoxForrest

HOW TO ESTABLISH RENT TO OWN ?

WHERE DO I GO TO FIND A HOME RENT TO OWN ?
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16 - Willow Glen
We think we've answered this question for you!
  • Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.
 
 

Answers (5)

I recommend that you find a Real Estate Agent to assist you with finding a Rent To Own situation. It is a complicated transaction. As a Listing Agent I am often asked if the owner of my Listings are willing to Rent To Own.  I have a Listing that has this scenario at this time, but I have to admit that Rent to Own transactions are rare in this part of the country.

Here are some thoughts and ideas that I hope are helpful to you.

A Rent To Own transaction can be  "win/win"  for the Home Owner and the Tenant. Are you in an area in which there are such opportunities? Generally Rent To Own scenarios are available in an area in which Owners wants to sell, but their mortgages are higher than what the sales price would command, and therefore rather than sell at a loss, the Owners hold onto their Real Estate Property.  Many of these Owners appreciate a tenant/buyer who can get them to the point of solvency, as well as manage and maintain the property. The key is to establish a price that works for the Seller and is desirable to the Tenant.

Some Owners appreciate that their Tenant has a vested interest in keeping the home in good condition while they are renting.  First, you need to find a property that you like in which the Owner is willing to work with you to create this Rent To Own Agreement. You may want to interview and hire a Real Estate Agent who are willing help you find a property with a Seller who is open to this kind of a Purchase Agreement. The Agent should receive a commission for the Rental and eventually a commission on the sale. It's a lot of work and the Agent may have some great suggestions for implementing the transaction. Each RENT TO OWN contract is different and you and the Owner should have Attorneys creating the contract so that there are no misunderstandings. There are many arrangements to consider such as:

-who maintains the home during the rental period/ this could be a negotiating tool for both parties?

-what is the amount of the rent?

-Will some of the rent be applied towards the down payment or purchase price? (need to check Lender's requirements in this regard)

-Are you qualified to purchase the home/ do you have a Pre Approval from a Lender to Purchase?

- What happens if either party changes their mind during the rental period? or circumstances do not allow the purchase? Language would need to be incorporated into the RENT TO OWN PURCHASE CONTRACT to address such an issue

-You will want to inspect the property before commencing the rental

-What if the interest rates go up and you cannot afford the property?

Good luck!

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 17
Profile picture for gator70
Rent to own 

Pro: You can freeze the purchase price against a market rise. You can accumulate a down payment over time. You can gain time to fix credit issues.

Con: You must be able to qualify for a mortgage as your exit point at some future date, set in the contract
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 17
Profile picture for wetdawgs
Look in craigslist.  However, b e very very careful.

Rent to own requires a substantial (5 to 30%) non-refundable down payment.

Monthly payment is more than fair market rent, and only the difference goes to purchase.

If you are not qualified when the contract says you have to purchase, you lose all your money to date and have to move out.

If you get involved, make sure you hire an attorney to review the contract.  Most rent to own contracts are in favor of the seller.

  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16
Look in the newspaper …….Be careful, if you are receiving credit towards the future purchase of t he home. Most loan types will only let you credit the buyer whatever they pay over the fair market value for rent. 
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16
Contact a realtor who specializes in the area where you want to live.  They will be able to guide you best.

Good Luck!
  Flag content
Close
Report a Problem

Please enter a valid email address.

Close
Content flagged

We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

Close
We're Sorry
This service is temporarily unavailable. Please come back later and try again.
January 16
 
Related Questions
HOW TO ESTABLISH RENT TO OWN ?
Profile picture for Laura McKenna
Latest answer by Laura McKenna
January 17 | 5 answers
Mortgage Rates
 
Be A Good Neighbor

Zillow Advice depends on each member to keep it a safe, fun, and positive place. If you see abuse, flag it. More on our Good Neighbor Policy.

Homes for Sale
  1. 300 Union Ave APT 25, Campbell, CA Home For Sale
    300 Union Ave APT 25, Campbell, CA 95008

     For Sale: $495,000

    • Beds: 2
    • Sqft: 931
    • Baths: 2.0
    • Lot: 871
  2. 811 Clarkston Dr, San Jose, CA Home For Sale
    811 Clarkston Dr, San Jose, CA 95136

     For Sale: $943,461

    • Beds: 5
    • Sqft: 2112
    • Baths: 2.5
    • Lot: 6534
  3. 846 Catkin Ct, San Jose, CA Home For Sale
    846 Catkin Ct, San Jose, CA 95128

     For Sale: $320,000

    • Beds: 1
    • Sqft: 658
    • Baths: 1.0
    • Lot: 1389