Rent to own homes are a wonderful opportunity for homeowners to either keep the property they already own or to buy one that’s been vacant for some time. Many people believe renting is an inexpensive way to own a home, especially in today’s economy. In this case, the potential downside is actually owning. There can be some very high maintenance costs and other issues with tenants that are not present with a buyer. Here are some pros and cons to renting as well as buying.
When a person rents a home, they do not have ownership of it. Instead they have a contract with the owner to rent the property until such time as the contract has expired. This gives the renter an opportunity to live in the property as if it were their own. They may also have access to the owner’s personal belongings. It is up to the owner to decide whether or not they wish to allow someone else to live in the property.
In many cases when a person rents a property, they are paying far less than they would if they bought it. This is because the rent can be so much cheaper for the renter than the owner charging for the use of their property. However, renters are responsible to pay all appropriate taxes, which could add up significantly if they are living in an area that taxes property owners.
Landlords also offer a lower standard of living compared to home owners. They also usually have to deal with more potential tenants that may cause them to have to turn some units or duplexes over periodically. Some landlords will allow only so many tenants at any given time. The potential income of these properties may not be as much as the income of a home.
The most common problem that most landlords have to deal with comes from renting units out to families or college students that do not intend to stay in the rental property long. Sometimes this causes conflict between the landlord and the tenant or other neighbors. Many people who rent want to live in their own unit and do not appreciate that there is no longer a place where they feel safe. In addition, some renters are not able to afford to pay their rent. If there are not any units left to rent after a period of time, the landlord will have to sell off the property and either buy back the property or give it to someone else who is in a better situation financially.
Renters often do not have anything to do with all of the upkeep of the property. This includes everything from fixing up the units to lawn care and maintenance. Many homeowners who are paying top dollar are satisfied with being able to do whatever they want to the property. A renter who lives in an expensive apartment or home does not expect to do much with the property.
Not everyone who rents has a retirement account. The average income for rent to own homes is close to 30% less than those who own their own. The average income of renters is usually lower than the earnings of those who rent. People who rent to own homes sometimes do not consider retiring until they are older than they would if they had sold the home and waited to retire. As of now, the rates are still very high but the aging of the baby boomer population means there will be fewer people available to rent when the rates go back down.
For some people, the only downfall to rent to own is having to deal with bad tenants. There are always bad tenants. Landlords need to make sure they screen tenants to make sure they are responsible enough to rent a unit. Any reputable landlord will have great security measures and a fair and ethical policy about who can rent the property. The down side to rent to own is if you do not pay the rent on time, this could end up in court and you could be forced to evict the renter.
