The Trusted Home Buyer Logo602-456-4440

4 Things You Should Be Aware Of When Selling Via Rent To Own in Phoenix

Martin Boonzaayer

January 31, 2020

Selling via rent to own can be an excellent option that many Phoenix homeowners fail to consider. Learn more about how the process works and what benefits you will receive in our latest post!

A rent to own agreement can be an excellent way for a Phoenix homeowners to sell their house fast. The financial benefits are very rewarding as is the security of a regular income from the property. That said, there are some things a seller should be aware of when using a rent to own agreement to sell a house fast in Phoenix. Keep reading to learn what they are and how you can create a rent to own agreement that will protect your best interest while helping you to sell your house fast in Phoenix!

Handling Default

While the odds of your potential buyers defaulting on the agreement is relatively low, you’ll need to know what to do if it happens. Until your potential buyer is able to get a traditional loan and pay off their debt to you, the property will still be in your name. Much like a bank, if your tenant isn’t paying, is causing damage to the house, or is somehow defying the agreement set in place, they are running the risk of foreclosure, while you will be able to retain full ownership, holding on to the down payment.

Creating A Legal Contract

A rent to own agreement should be very comprehensive as to protect both the buyer and the seller. It should contain clauses highlighting who is responsible for what, important dates, and penalties for violation of the agreement. You don’t want to leave room for any discrepancy or disagreement between you and your potential buyer. To ensure your agreement is legally binding, reach out to a local real estate attorney or call The Trusted Home Buyer to help you facilitate the rent to own process.

Finding The Right Tenants

Using a rent to own agreement opens up a whole new world of potential buyers. People who couldn’t quite qualify for traditional funding due to a low credit score or lack of down payment may be able to meet the qualifications set forth in your agreement. There are many great buyers out there who are being held back due to a blemish on their credit report. The key is to find the buyers of genuine character who will follow through on their obligation to you. Once the right tenants are found, you will create a win-win situation for all parties involved. Keep in mind that there is a reason traditional banks had denied them in the past, so be sure to do your homework on your potential buyer before entering into an agreement.

Being Back Where You Started

While it may not happen often, you do run the risk of your tenant being unable to buy at the end of the lease term. This means you will still be the owner and can either try to list at this point or enter into another rent to own agreement. While this may seem frustrating, you can actually come out ahead from a financial standpoint. Sure you didn’t sell the house, but you were able to collect a higher than average rent plus a non-refundable down payment for your troubles. Who knows, the market may rise dramatically during this time and you may be able to sell for even more than you would have before the agreement!

Selling via rent to own in Phoenix can be very beneficial to homeowners looking for a way to quickly make money off of a property they own. Our team can help you understand the risks and the reward so you can make the selling decision that is right for you!

Learn more about selling via rent to own by reaching out to our team today! 866-488-9923

Explore more

October 10, 2021
Buy For You

If you would like to buy a house (or have a client who does) and struggle to get your contingent or financed offer accepted, make a cash offer instead!  Once your offer is accepted, The Trusted Home Buyer will buy it for you with our cash, and you can move in immediately. Imagine a stress-free […]

Read More
October 10, 2021
Short-Term Lending

We offer short-term lending options to help property owners bridge temporary financial gaps. There is no restriction on how the funds are to be used. Short-Term Lending Examples: Fix up a property so you can sell for top dollar Get down payment funds for your new home Move-in funds to help Mom (or Dad) transition […]

Read More
October 1, 2021
Work Together

We love working with real estate agents to help support their client's needs with short-term lending options and our new We Buy for You program. These programs will support your clients best interest while also ensuring that you are still able to work with them even if they are struggling to get approved for a […]

Read More
July 30, 2021
How to Sell Your House Webinar With Martin Boonzaayer
Read More
The Trusted Home Buyer Logo
Copyright © The Trusted Home Buyer
WE BUY HOUSES IN:

4.7 61 reviews