Rich Infra Shares Benefits of Rent-to-Own Property

These days, many people are buying properties to rent them in the future and get reasonable returns. Every year people migrate from small town to metro cities like Mumbai, Bangalore, Pune, Chandigarh, Delhi NCR etc. And it is not feasible for everyone to afford buying a new house with bulk payments. Hence, for such buyers, rent-to-own property is the perfect option to explore. For such type of property, buyers need to sign a specific document with the seller. As per the document, the buyer agrees to pay a certain or increasing amount in the form of rent to the property owner till the time whole cost is paid. In today’s post we would be talking about the potential benefits that property owners can derive. Take a look:

Advantages for Property Buyer

Familiaritywith NeighborhoodWith Rent-To-Own option provides an opportunity fora buyer to stay in the house and get familiar with the neighborhood. In this way, the buyer can judge whether the property will be suitable or not. Enough Time for Arranging FinancesBuying property is a long term decision and involves huge investments. It might not be feasible for everyone to keep such huge amount of money at disposal. Also, getting loans from commercial banks is also a time taking process. With Rent-To Own option, the buyer gets enough time to arrange finances.

Benefits to Property SellerReduced Maintenance Costs When the property is provided to the buyer under Rent-To Own contract, all the maintenance costs are to be borne by buyer. With this, the buyer gets diligent as regards to property maintenance. Fixed Selling PriceIn Rent-To Own contract the price of the property is mentioned. So, if the property price falls in the future, the buyer would still have to pay the amount mentioned in the contract.The buyer is allowed to stay in the house for 3-4 years and in return he/she has to pay monthly rent. The contract may also include a clause of non-refundable security deposit to the property owner.