What is Rent To Own? RTO is simply deferred ownership. Terms of deferred ownership could range from 1 month to 60 months. There are several types of rent to own. Most commonly used for rent to own homes, condos, investment houses and other personal items such as cars, boats, rent to own furniture.
Why do you want to rent to own? People with poor credit, lack of income, saving up for down payment are the ideal candidates. Most of the time rent to own is a great program for first time home buyers.
What is the difference between rent to own and lease – option? With rent to own terms are defined for a specified time for fulfillment with equal monthly payments, upon completion of time period the title is transferred. This is simply created with a sales and rental contract. With lease – options the buyer is not obligated to buy at the end of the term.
What is the benefit for the seller to use RTO? This is a common way for the seller to quickly sell their home or property as more people are able to rent to own than buy outright.
Is rent to own more expensive than lease – option? Rental normally requires one month’s rent and one month’s deposit while lease – option to own would require 1 to 10 percent down, which is non-refundable and is usually more expensive. This option makes it easier to own rather than lease – own to buy. Rental properties usually are maintained by the potential buyer.