Snellville, GA-based Fresh Start Home Sales, is taking steps to give their community more insight into the questions they should ask before signing a Rent To Own Agreement. While this option can prove attractive for many reasons, the company advises against assuming that all Rent To Own agreements are made equal. As with other situations, tenants-buyers must take all appropriate steps to thoroughly understand any agreement before committing. Learn more here: Rent To Own Homes, Near Me.
"If you are looking for a local Rent To Own house but aren't sure if there's a catch you should be on the lookout for," says Fitz Thompson of Fresh Start Home Sales, "we can immediately assure you that the answer is yes, potentially. However, it would be easier for you to simply keep in mind that you need to ask certain questions about your agreement before you get fully on board."
A Rent To Own home typically involves both a rental agreement and an option to purchase the property outright within a given period. One of the first questions a tenant should ask concerns how long of a time frame they have to decide whether they want to buy the house. While this period is usually set between 1-3 years, it falls to the homeowner (potential seller) and the tenant (potential buyer) to determine what period they are both comfortable with. During this time, the tenant-buyer may decide to purchase the home.
Once it is concluded, however, the owner may either elect to allow them to keep living there as tenants (perhaps after extending the agreed period) or not renew the lease at all. Furthermore, it should also be noted that this period gives the tenant the option, not the obligation, to purchase the property. They may choose to live at the property for the full term and then move if they decide against making a purchase. However, it should also be noted that tenants typically have to put down an option fee (often around 1% of the purchase price) as part of an agreement. In most cases, this option fee is non-refundable. Again, the tenant must question whether they may extend the period once it is concluded, especially if they are unable to reach their goal (build enough funds to make the purchase) at this time.
It is for the same reason that tenants- buyers should also ask how much of their rent will be put towards their purchase price. Known as rent credit, this is a percentage of the rent that will go towards the house's purchase price (which is set at the time the agreement is made and not subject to market changes). Should the tenant exercise their option to buy the property, this credit will reduce the house's price by a corresponding amount as it effectively allows them to build a downpayment. However, like the option fee, it too is non-refundable.
Next, it must be determined who is responsible for maintenance repairs and damages on the property. Agreements may divide essential maintenance from capital improvements, for instance (such as the difference between replacing a bulb and replacing the roof), but not all contracts make this distinction. However, Fresh Start Home Sales suggests that they try to avoid taking on maintenance costs for an initial period, perhaps between 4-6 months, to give themselves time to identify any current issues with the property and have the owner take care of them instead.
Finally, the company advises that tenants do everything they can to obtain a copy of the Rent To Own agreement to share it with their lawyer. A legal expert will be able to guide them around any pitfalls more effectively and clear up any confusion regarding their responsibilities. Fresh Start Home Sales' advice concerns other aspects of the agreement as well, including what tenants can do to lock in a home if they do not have the best credit score. However, as this is a complex topic, they welcome direct inquiries from those who wish to consult with an expert in the field.
Those who wish to pursue a lease-purchase or Rent To Own home may reach out to Fitz Thompson for further details on the area opportunities. Additional information can be found on the company's website as well.
SOURCE: Press Advantage [Link]
Here at Fresh Start Home Sales, our focus is simple. Find and purchase great houses in and around Gwinnett County Georgia, fix them up, and offer them to people in Gwinnett on a Rent-to-Own basis. We help people who wouldn't otherwise be able to own a hom
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