People across Salt Lake City are more than ever selling their houses to their own agreement through a rent. You can bypass the stress, hassles, and cost of a traditional sale by selling this way. You can also get your desired price! Continue reading our latest post outlining a typical rent for the structure of your agreement!
Why Do It?
There are many reasons why people choose to sell to own or lease contract through a rent. By selling this way, you can generate monthly income, sell at the price you want, and make sure you have long-term “tenants” that take very good care of the house. These are not just ordinary tenants, they are people who plan to buy your home completely. They’re going to treat it as their own, all while paying you a monthly living fee. Your monthly rent payment is likely to be received on time every month. A tenant who rents for ownership is not likely to lose their deposit or be expelled from a house they eventually plan to buy. You will secure yourself a long-term tenant and a sale (for the price you want) at the end of that term.
A Typical Agreement
First of all, it is possible to negotiate many parts of the agreement. That’s why many sellers love selling this way: for the price they want, they have the ability to sell on their terms. One way many people set it up, creating a lease agreement with an option to purchase at the end of the rental term. You can’t sell the house to anyone else during this period of time. Instead, you rent the house for a specified term to your potential buyers. Somewhere between 1-3 years, most people set this term. The tenant pays an option fee in advance, which acts as a kind of down-payment on the house. It is non-refundable and provides your tenant with a strong incentive to buy. The tenant will pay an elevated rental fee every month in addition to the option fee. A portion of this fee may go towards the home’s purchase price. If, at the end of the rental term, your tenant defaults or chooses not to buy, you keep the deposit and any money paid during the rental period. While each agreement is set up a little bit differently, routine maintenance and small repairs often become the tenant’s responsibility. This is negotiated and put into writing beforehand.
A Win-Win For Buyers And Sellers Throughout Utah
You are really creating a win – win situation for both buyers and sellers by selling rent to own. Sellers are going to receive the price they want for the house without any trouble or listing uncertainty. There will be an opportunity for many more buyers to buy. Buyers will be able to save or repair their credit by “renting” the home for a certain period. First of all, the two most common blockages to buy outright. You will create an additional income stream and receive both the beginning and the end of the rental term lump-sum payments. Selling to own through rent is the solution they’ve been looking for for for many sellers! Find out if you’re right!