When thinking about selling a house in Miami, most homeowners lean towards the conventional agent selling route. As a result, many people fail to consider using a “rent to own” agreement to facilitate the deal.
Don’t Overlook “Rent to Own” Agreements!
Offering to sell your house via a “rent to own” agreement is likely to find you a buyer quicker than you would otherwise expect. Plus, not only will you receive increased rent each month, but “rent to own” buyers also have to provide a cash downpayment upfront.
Selling in this manner can be very beneficial for homeowners who don’t need the cash equity out of their property straight away. So, without further ado, let’s explain how to sell your house “rent to own” style.
Set Your Criteria
Advertising your house as “rent to own” will open up a whole new pool of potential buyers. That said, you still shouldn’t enter into an agreement with anyone you meet off the street. So before doing anything first determine what you will accept as far as credit score, downpayment amount, and length of the agreement.
A “rent to own” agreement doesn’t last indefinitely. Instead you and your potential buyer will agree on a timeline in which they will pay increased rent and then afterwards purchase your house outright. Although, in most cases, these buyers are able to make good on their promise to purchase your house, there are occaisions where things go wrong.
That’s why it’s important figure out what you’re looking to accomplish from a “rent to own” agreement and what you’re looking for in a potential buyer.
Agree On The Terms
Once you’ve figured out what kind of tenant you’re looking for, you’ll need to find an interested buyer who will agree to your terms. This includes the amount of rent to be paid each month, the downpayment amount, and how much of the rent goes towards purchasing the home. You’ll also need to agree on a timeframe that works for both parties.
You don’t want to still own the property five or ten years from now. Preferably, within 1-3 years the renter must purchase the home outright or walk away, losing their downpayment and option to buy in the process.
Create A Legal Contract
When using a “rent to own” agreement for selling your house in Miami, you have to make sure that everything is set up legally. The last thing you want is to be facing a lawsuit a few months down the road or find yourself having to file against your buyer.
A “rent to own” agreement needs to be detailed, covering every scenario possible to protect all parties. If in doubt, our team at Sunshine State Buyers can help you facilitate the process and make sure everything is handled legally and professionally.
Having A Way Out
Just like a rental situation, in a “rent to own” agreement, you can evict the tenant if they fail to make payments or violate the agreement in any way. Of course, no homeowner wants it to come to this, but it’s still important to know everything there is to know about the eviction process.
The house is technically yours until it has been paid for in full. As a result, you must ensure nothing happens that could lower the property’s value.