Selling your property via a rent to own agreement is a great way to get the purchase price you need for your San Antonio house quickly. The process is simple and you will probably be able to find a buyer right away, even your present tenant! Find out more about how to set it up in our latest post!
There are a lot of reasons why homeowners in San Antonio are choosing to sell their properties via a rent to own agreement. If the cash isn’t needed right now, there are several financial benefits to selling your house in this manner. Below we outline 3 steps to sell your house by means of a rent to own agreement in San Antonio!
Step #1 – Find The Right Tenants
When entering into a rent to own agreement with a possible buyer, you will want to make sure that it’s someone you trust and know. Ultimately, if you would like to sell the house, you do not want to worry about the deal not going through once the lease period is up. You’re delaying the receipt of your funds so as to get the price you want, be certain you are working with someone who is worth it! If you have a great, long-term tenant, they’re the first place you may want to consider when trying to find the right tenants to move in.
Step #2 – Run The Numbers
As a seller, you’re sacrificing immediate cash for a long-term gain, so you may want to make sure it’s worth it. Just how much will you need upfront as a deposit? What about an option fee? You will need to determine what you’ll want to charge in rent each month so as to make it worth your while. You’ll want to decide which costs will be passed on to your tenants and which costs you will still need to manage. As you’ll still technically be the owner of the house during the rental period, you’ll ultimately be responsible for insurance and taxes. Be certain that the rent you’re charging each month can pay for these costs!
With a rent to own agreement, the selling price is generally locked in at the time of purchase. However, in some instances, a tenant will agree to buy at the market value at the time of the actual sale. As you run the risk of your house’s value dropping, you might also be able to get a higher price when all is said and done. If your renter agrees to this, it’s something that you may want to consider!
Step #3 – Agree On Terms
There are lots of things a seller and buyer must agree upon before executing their rent to own agreement. Prior to the seller and buyer signing on the dotted line, make certain you have a lawyer look things over. The smallest mistake in your contract might have a huge impact on your ability to sell on the terms you had planned on.
A few of the financial details you will want to include are:
- Will there be a down payment?
- How much will the rent be each month?
- Just how much if anything, will go toward the buyers down payment?
- How long before a purchase is required?
- Who’ll be responsible for taxes, maintenance?
- What happens with a default?
Spelling out everything as clearly as possible from the get-go will save you from any frustration and disagreement during the lease process and when it’s officially time to sell. When handled correctly, a rent to own agreement Is a good way for a homeowner to sell their house in San Antonio.