The term rent to own home lists are generally used when discussing owning real estate without actually owning it. There are two basic types of rent to own lists. One type of rent to own list is a lease with a purchase price and the other type of rent to own list is a free market lease without a purchase price.

Let’s start with the first type of list. A lease with a purchase price is a simple lease with a fixed price agreed upon at signing. It is common in commercial real estate where tenants want extra rental dollars. This type of lease has a higher commission rate. Higher commission rates are charged because the tenant is responsible for the property taxes, insurance, landscaping, utilities, maintenance, repairs and much more.

When tenants pay rent at the end of the month they receive a check for the outstanding balance. If the amount due is more than the remaining balance of the rent and purchase price then the tenant gets a right to purchase the property. If the amount due is less than the remaining balance of the rent and purchase price then the tenant is treated as a non owner tenant and only a fraction of the rent is charged to the purchaser. In marketing will not be able to legally do anything with the property.

The rent to own market lease is a lease in which a tenant pays a certain rent for a fixed period of time. When this rent is received by the owner the tenant is considered a non owner tenant and can legally live in the property. The rent received is a percentage of the gross rents in the market. If the rent received is more than the balance of the rent and purchase price then the tenant will legally have the option of buying the property. The market lease will set forth all the conditions for a potential buyer to legally purchase the property.

So how does the rent to own market lease work? This is a good question and one that I believe every individual should be asking when considering whether or not they should lease their property. First, the market lease will outline all the legal terms that are part of the contract. The lease will spell out exactly how much rent will be charged and will also outline the schedule for payouts. Each tenant will sign a master agreement, which is the agreement that binds the parties involved in their rent to own contracts.

marketing will also set forth the terms of any repairs that have to be made to the property. The agreement will outline if and when a purchaser may make any repairs to the property. If a purchaser is made at any point during the life of the lease it is called a Lease Purchase. In order to move forward with the lease purchase the owner must legally give the purchaser all of the money that was legally due under the master agreement. There is also a deposit that is needed to hold the property.

Once marketing has been successfully entered into the property owner can go to court and seek a legal judgment to force a sale of the property. Once the judgment is delivered and the property is sold the property owner owes the rent that was paid under the market lease. The proceeds from the sale of the property go to the court that delivered the judgment. The lease purchase is not considered a sell off and is separate from a traditional real estate transaction.

In my opinion the best way to approach the subject is to find a lease purchase and hold an open house to show the property off to your prospective buyers. If marketing have any problems or questions about the property I would be happy to answer them. Once someone confirms interest in buying the property I would be happy to answer any other questions they might have. Please consider marketing in 2021.