There are different ways that you could own a house but a rent to own contract is one that most people are yet to know about. This is basically a rental contract with an option to buy the house once the rental period is over. The moment you pay the rent , a portion of it goes to equity and building your credit. This option in return allows the customer to buy the house on an agreed amount when regardless of the real estate value at the time of the actual purchase. This option is not to mean that you are forced to buy the house when your rent period has come to an end.
The money take off from the rent is not a security deposit , it will lock the price of the house down so you can purchase it at that even if the real estate value goes up. The instructions however will be that the party renting to buy has to meet the rent on time and treat the property as a rental during that period. If you wish to make some changes to the property you have to get the approval . In rent to own contract the rent that you will be paying will be higher in comparison to other normal rentals but it is to accommodate the amount that is directed to the actual purchase at the end of the contact. Be sure to click here to know more!
Depending on how you look at it is similar to committing yourself to a forced savings plan only that this one is towards making a down payment at the end of the contract. Many rent to own agreements will also require the person buying the house eventually to arrange for some minor repairs to the house. For major issues such as a new roof and some structural aspects, those remain the responsibility of the home owner until a new home buyer opts to exercise the option. These arrangements can help the home owner to develop good ratings which will help them get out financial problems they were in before . Make sure to learn more here!
With such contracts you do not want to take any chances, bring in a professional property inspector to inspect the property and recommend it. A good rent to own company will put you in touch with an inspector before you can make any major decision on the property in question. Some companies will allow you to test the neighborhood that the property is at so that you can approve as fitting for you before committing yourself to pay for it. Rent to own option is a good one especially in places where qualifying for a mortgage is difficult. Find interesting facts at https://en.wikipedia.org/wiki/Property_management for more details about real estate.