A “rent to own” agreement can be an excellent way for a Miami homeowners to sell their house FAST. There are many significant financial benefits including 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 Miami. Check out the article below to learn what they are and how you can create a “rent to own” agreement that will protect you while helping sell your house fast in Miami!
Advantages & Disadvantages of Selling “Rent to Own”
In truth, the ods of your potential buyers defaulting on the agreement is relatively low since the majority of “rent to own” buyers are passionate about being able to purchase a house and appreciate the opportunity you’re giving them. However, you should still learn about what to do if you end up will buyers who do default.
Luckily 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 refuses to pay, or causes damage to the property, or in some other way defies the agreement in place, they run the risk of foreclosure. When this happens, you retain full ownership of the property and get to keep their downpayment.
Creating A Legal Contract
To protect both the buyer and the seller, a “rent to own” agreement should be very comprehensive. It should contain clauses highlighting who is responsible for what, important dates, and penalties for violation of the agreement.
There should be absolutely no room for any discrepancy or disagreement between you and your potential buyer. It’s a good idea to reach out to a local real estate attorney or call our team at Sunshine State Buyers to help you facilitate the “rent to own” process. That way you can be 100% sure your agreement is legally binding.
Finding The Right Tenants
Using a “rent to own” agreement opens up a whole new world of potential buyers. Just imagine honest families and couples who through no fault of their own (or a past error from years ago) simply fail to qualify for traditional bank funding. 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 without a doubt follow through with their payments. Once you find the right tenants, you will create a win-win situation for all parties involved.
NOTE: Be sure to do rigorous background checks. Because even though honest, financially secure people make mistakes, there will be a reason why a traditional bank denied funding their mortgage.
Being Back Where You Started
While it doesn’t happen too often, there is the risk of your tenant being unable to buy at the end of the lease term. However, you’re still the owner at this point. And although it may seem frustrating, you can actually come out ahead financially.
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 time and effort involved. You never know; the market may dramatically improve during this period, and you might be able to sell for even more than you would have before the agreement!