Tag Archives | rent-to-own-home-process

How Do Rent To Own Homes Work In Quakertown and Surrounding Areas?

One of the first questions we get from potential tenant buyers of our local Quakertown and Surrounding Areas PA rent to own homes / lease option homes is “how do rent to own homes work in Quakertown and Surrounding Areas?”

With a flooded real estate market, especially since the bubble burst of the mid-2000’s, rent-to-own homes have become a popular option for people who are deciding whether to purchase or rent a home.

Renting to own offers advantages to both buyers and sellers.

For the seller, they have steady income to make steady mortgage payments, while the seller has a period, typically a year or two to organize his or her finances and secure financing to buy the house.

The Local Rent To Own House Process

Renting a home to own a house is a relatively straightforward process, though many people are confused.

A common misconception is that the renter can live in the home and pay rent over a period of 15, 20, or 30 years, then own the home. It’s slightly more complicated that that.

But here are the basic elements of a rent to own agreement. 

• The buyer and seller draw up an agreement, covering all terms of a rent-to-own agreement.

• This contract will state the monthly rent, and a set period of time.

• The renter will have the option to purchase the home at an agreed upon price at the expiration of the agreed upon time period.

By giving a potential buyer a year or two to get their financial house in order, the seller can continue to make mortgage payments on the home, while living elsewhere. This is beneficial to the buyer, as if they’re sure that they can acquire financing, they can usually begin customizing the home to meet their needs and preferences… essentially treating it like you own the house (because you may own it someday!) and having that sense of home ownership during the process.

How Does The Monthly Rent Work With A Quakertown and Surrounding Areas Rent To Own House?

Really it depends on the location of the house (there may be different laws that dictate what you can do in different states) and any new federal guidelines that may come out that may limit what the property owner of the rent to own house may do.

But the standard guidelines of a rent to own house are pretty simple.

  1. You agree on a rental rate and a future purchase price upon the end of the rental lease sometime in the future (usually 1-2 years).
  2. You first pay an upfront payment to move in and secure the contract and the terms with the option to buy. The “option fee” or “move in amount” may in some cases act as a percentage of the down payment on the home, should the renter decide to purchase at the end of the term. This may or may not be the case depending on when and where you’re reading the article (based on laws). Connect with us directly for the local Quakertown and Surrounding Areas PA Rent to Own laws.
  3. You pay the monthly rent payment. This is no different from paying rent in any normal rental situation.
  4. At the end of the rent to own agreement (usually 1 – 3 years) you decide if you want to purchase the home for the price you agreed on initially in your rent to own agreement. If you want to buy the home, great!  We can assist you in getting qualified for a conventional loan to buy the home.  If you don’t want to buy the home, no biggie. You’re not required to buy the home at the end of a rent to own agreement in Quakertown and Surrounding Areas… the choice is fully yours.

So, for the question of “how do rent to own homes work in Quakertown and Surrounding Areas“… well that’s the basic process.

While there are lots of benefits of renting to own a home here locally… every housing option has pros and cons.

Just do your research, talk with reputable and experienced companies like Cyndy Sells Houses who can walk you through the local Quakertown and Surrounding Areas rent to own house process… and make the smart financial decision for you and your family.

Many people choosing rent-to-own may have past credit problems, or may just be unsure if purchasing a home is right for them. If that’s you and you want to look into the rent to own process and even see the available rent to own / lease option houses here in Quakertown and Surrounding Areas PA, click the link below and fill out your basic info to get on our Quakertown and Surrounding Areas rent to own home list

In an era of uncertainty in the real estate market, many Americans are finding that rent-to-own homes provide them with both flexibility, and the option of purchasing a home at the end of the term. By understanding how rent-to-own homes work, you can position yourself to take advantage of the many benefits of renting to own, and realize the American dream, despite past credit problems.

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Talk With Us About The Quakertown and Surrounding Areas Rent To Own Process at 610-200-5544 or
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Tips on Renting A Quakertown and Surrounding Areas Home

In today’s article, we’ll take a look at some tips on Renting a Quakertown and Surrounding Areas home that you should consider when renting your next home in Quakertown and Surrounding Areas.

As property values plummeted over the latter part of the 2000’s, many people began to turn to renting. There are plenty of reasons to rent as opposed to purchasing a home, including maintenance costs, desire to live in a densely populated part of Quakertown and Surrounding Areas PA, or the desire to live in a smaller space.

Should I Rent From A Private Owner vs. Management Company?

There are advantages and disadvantages to renting from a management company.

Oftentimes, a management company will quickly make repairs, and be responsive to tenant complaints. Forward-thinking companies may offer rent payment, maintenance and repairs requests, and answers to other questions on their website. Property management companies in Quakertown and Surrounding Areas are usually strict about who they’re willing to rent to. They’re more likely to run credit checks, and require certain scores to consider a tenant. Many property management companies are also reluctant or outright refuse to rent to tenants with pets.

Also with property management companies they tend to charge top of the market rents because they know what the “going rate” is.

Private owners are often more flexible about who they’ll rent to. Many are renting homes that they own in their retirement account, biding time until they retire, so they’re simply looking for an occupant. If you have credit difficulties or have a dog or cat, it might be best to find a private owner.

Private owners often may rent a house at a little bit lower price than a property management company because they don’t want to hassle with finding tenants or they simply may not know the local Quakertown and Surrounding Areas PA rental housing prices well.

In the end both private property owners and local property management companies have to follow the same landlord – tenant laws in PA so the experience with either one should be fundamentally the same.

Be Realistic with Your Budget

Most financial experts agree that you should spend no more than 30% of your total net income on housing costs. If you’re younger, you may want to budget more than 30%, as entry-level salaries are low, and the rental market is booming, leading to higher costs.

Take Pictures of Everything

After renting your next home in Quakertown and Surrounding Areas, before assuming the lease, it’s extremely important to take photographs of every inch of the house or apartment. This can be essential to recovering your security deposit at the end of your lease. Some uncouth landlords will use your security deposit to pay for broken items or scuffed floors that existed before you moved in.

Also, when you take pictures of everything it’ll indicate to the landlord that you’re a responsible tenant and build that trust with you as a tenant.

Get Renter’s Insurance

Renter’s insurance protects your belongings from theft and other catastrophic losses. In some states, landlord’s rights trump tenant’s rights, and if something goes missing or damaged in your rental unit, you’ll be responsible.

By purchasing renter’s insurance, your belongings will be protected. Renter’s insurance is extremely affordable, often costing less than $200 a year… which is a no brainer.

If you’re looking for renters insurance in Quakertown and Surrounding Areas PA just pick up your phone book and call any reputable insurance agent (the same type of insurance agents who could sell you auto insurance tend to offer renters insurance too) or head online and do a quick Google search for “Quakertown and Surrounding Areas PA insurance agents” and you’ll find a whole list of agents to choose from.

By being very details oriented during your search and moving into your new apartment or rental house, you can ensure a pleasant experience for both you and your landlord! For other tips on renting a Quakertown and Surrounding Areas PA home feel free to email us directly or give us a call and we can provide more information and free guides to help you find a great local house to rent… even a Quakertown and Surrounding Areas rent to own house list in case your main goal really to purchase a house rather than rent… but your current financial state won’t let you get a home loan (we can help!).

Consider A Quakertown and Surrounding Areas Rent to Own Home

The tips on renting a house in Quakertown and Surrounding Areas above are quick and simple and apply to a rent to own house as well.

But if your goal is really to own your own house here locally in Quakertown and Surrounding Areas… but your financial situation won’t let you qualify for a loan (bankruptcy recently, foreclosure recently, your income not high enough yet, etc.) then renting to own a home may be an option for you.

If that’s you… then start on this website by learning about the rent to own process and even get on our Local Rent To Own / Lease Option House list to see the available rent to own homes in Quakertown and Surrounding Areas.

For Other Tips On Renting A Quakertown and Surrounding Areas Home

If you have any questions at all don’t hesitate to contact us anytime. We’re here to help!  We can connect you with reputable property management companies, provide you free resources as a tenant here in PA that show you your rights, and more!  Or, if you do want to learn more about renting to own a local house… excellent!  We’ll walk you through the process and see if it’s a good fit for you!

 

Renting To Own Sound Good?
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