Summary: According to the latest norms and standard rules, rent-to-own can prove to be a thoughtful option for the owners of any property, but not for the tenants.
For anyone, who is facing any difficulty selling their properties, can always rely upon rent to own agreement, which can be a valuable solution for both the involved parties. However, according to the latest surveys, it has been found out that this kind of lease agreement had proven to be a great relief for owners, but not with much positive review from tenant side. This kind of standard lease agreement generally falls with two agreements. It comes handy with a standard lease agreement and a perfect option to purchase. It can be a money changing game for the landlords, but the tenants might have to leave the property, when the time ends, making it quite a challenge for them.
Obligations of both landlords and tenants
In case, you are willing to focus towards the importance of rent-to-own service, you better to be acquainted with the obligations, associated with it. This lease agreement comes with mixed reviews, from owners of properties and tenants. The points, which are listed below, can offer you with a general guideline, which can help you to understand the obligations, related with it.
- Rent payment facilities: When compared with the traditional rent facilities, the payment amount is quite higher in this segment. This might prove to be a positive and helpful mean for the landlords, but not for the tenants. Here, the agreed upon percentage is associated with escrow account. Now, it is solely the responsibility of the landlord to set aside the agreed percentage of rent.
- Tenants make the repair: In other forms of traditional ease, landlords are asked to make any necessary repair, if any damage occurs to the place. On the other hand, with this standard lease agreement, all the repairs need to be done by the tenant himself. This might prove to be good for landlord as they are free from investing more money, but tenants have to make the additional payment, just for their stay. During maximum instances, tenants and landlords consider to have affair bargain, with this necessary change, in mind.
- Fulfilling lease obligations: Until the tenant purchase the property legally, the premises are under the landlord. Apart from making the necessary repair, tenants are bound to comply with the duties, as mentioned in the lease. Therefore, if the lease demands a completely no on pets, the tenants cannot break this rule. In case, the tenant violates any of the rules, as mentioned in the lease, then the entire option of purchasing the property becomes null and void.
Perfect solution for landlords only
From the points mentioned above, it can be finally concluded by stating that rent-to-own is a life-saving option for the landlords or owners of the property. However, when it comes to tenants, standard rental or lease agreement proves to be more important and money saving option, for them. Therefore, if you are playing the role of a tenant and want to get in terms with lease properties, better set out the rules clearly with the landlord. This will help you to make the right choice, in the end.