What Does Rent to Own Mean

One essentially stumbles upon this question “what does rent to own mean” when looking out to buy or lease property. Rent to own is a glorious option for people who do not have a good credit record or who have not sufficient fund to make down payment to buy house or other appliances.

One can rent a property at an option consideration wherein apart from paying rent to use the property; an extra equivalent to 1 to 5% of the property value is paid per month to claim possession of the property at the end of the contract. If the contemplated takeover does not see itself to fruition, the renter stands to lose the entire money.

The renter can claim a rent credit by playing good with the owner. The rent to own contract generally spans from 1 to 3 years. The owner may take possession of the property if the rent is delayed and can claim a penalty if damage to property happens.

2 comments:

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