Things To Look For When Renting To Own A Home
Renting to own a home in Baltimore, or any city for that matter, isn’t a new concept, but the process of “renting to own a house” is one that most people have questions about.
This article will walk you through what to look for if you’re looking for Baltimore rent to own houses.
1. Find The House You Want To Live In Long-Term
A lot of people who are deciding whether they should just rent or “rent to own” look at the whole rent to own / lease option process in the wrong way. Don’t look at it like you’re looking for a house to rent for a short period of time. Instead, find a house that you’d love to live in for a longer period of time (no less than 5 years).
Rental houses are usually temporary, making it easy to settle for less. When you are looking to rent to own, however, you need to find something you would be happy to own for several years.
2. Terms That Fit Your Goals And Needs as A Baltimore Home Seeker
Not all rent to own houses in Baltimore have the same contract. Find out the terms of the rental agreement and the terms of the purchase option as well. Usually the monthly rent tends to be a bit higher with a rent to own agreement vs. a normal rental agreement because you’re basically paying a premium for the ability to potentially purchase that house at a predetermined price in the future. There’s a lot of value in that. You should also have some flexibility that protects you. Make sure there are no fees for not exercising the purchase option at the end of the agreement.
Clarify with the owner of the house on who will pay for things during the rental term like…
- Lawn care
- Upgrades inside the house (new appliances, paint, etc.)
Get it all in writing!
3. The Value Of The Home – The Value Going Up?
One of the big benefits of a Baltimore rent to own home is the ability to lock in a home at a set price well in advance of you having to purchase it.
With a rent to own house contract, you agree on a monthly rental rate, the term of that rental (usually 12-24 months), and a purchase price at a future date.
Because of this the purchase price usually doesn’t come at a discount for you but if you buy in the right Baltimore MD neighborhood (one that is increasing in value), you could be earning instant equity if you decide to purchase the home at the end of your rental term.
Call to see our current Baltimore City rent to own homes…
If you still have questions about the rent to own process just call us anytime at (443) 863-9808.