Rent to own is a rental contract with the option to purchase the house at an agreed price after the rent-to-own period ends. You will get a chance to establish your credit when you pay rent for the rent to own property from part of the portion of the rent and the rest of the money goes toward equity. A non-refundable amount is paid to the homeowner which is a small percentage point on the total value of the house on sale. After the agreement has been reached, the home buyer or the rent to own house buyer is given a chance to purchase the house at an agreed quote which is not influenced by the change in the market value for the same property. The agreement does not bound you into buying the home in question at the need of the rent to own time as you can decide to move to another property.
Many people are now embracing the rent to own homes as it comes with many benefits to the person buying the house in question. Part of amount paid each month as part of rent for the rent to own property is not treated as rent but it is used to secure the current selling price even when the market value for the same house change in future. You are required to clear all the rent without delay and to understand that the house is a rental property until you decide to buy it. You need to get approval from the owner of the house to make any improvement or changes to the home. The rent to own homes attract high rental rates, but some of the cash paid is used as savings which will be vital when purchasing the house in question.
Some of the rent to own home require minor repair or renovations to be done by the renter as their aim is to purchase the house after the rent-to-own period is completed. The rent to own house owners are expected to conduct considerable home improvements during the rent to own period before you decide on buying the house. Rent to own homes are essential in that they can help an individual to own the house in future they get an opportunity to build on equity during the renting period. A home renter also gets a chance to boost the credit ratings and avoid the financial issues depicted in a potential buyer’s credit history. Ensure that you have used the services of a home inspector before making any purchasing decision as they will help you to avoid some of the errors that will cause you incur more costs in future trying to renovate or repair the house.