3 Ways Rent to Own Options can benefit the Owner
As my portfolio has grown and stabilized, I am always interested in learning creative ways to make things work better and how to continuously be looking for out of the box options. I had heard about Rent to Own programs before but it seems that many programs were geared to sharing how it can benefit tenants.
But, I wanted the scoop on how it can benefit Lady Landlords!
Read below for the 3 ways this can benefit you or:
Listen to this strategy on this week's episode on the Lady Landlords Podcast here!
Step 1: Monthly Cash Flow
With Rent to Own, a tenant is focusing on being a homeowner so they WANT to make their payments on time to keep in good standing with their agreements with the seller...and also their future lender who will be helping them mortgage the property down the line. Sometimes, the agreement can include the monthly rental payments that go towards the purchase price, but I learned that is not usually the case. This means that you, as the seller, will have an increased chance of getting full, on time monthly payments in addition to your full sale price!
Step 2: Agreed upon Sales Price
And with that being said, your price is already agreed upon. With many people wondering if the high prices we have seen over the past few years are going to come down soon, now is the time to lock in a great sale price! What's great about Rent to Own is that you can still collect that cash flow for years to come, but you will know you will be getting your price when the time comes, even if the market softens!
Step 3: Less Maintenance Calls
I was recently at a conference where another investor mentioned he "Drives for Dollars" regularly. A question came from the crowd about how he knew if the doors he was knocking on were renters or the homeowners themselves. He said if he saw someone fixing plants in front or picking up the trash cans, it was a sure bet they were the owner. He comment was to how those that own property treat their properties with care. Now, of course this is a generalization, but the same can be said of those that are part of a Rent to Own program. They automatically feel more inclined to take care of the property that they contractually agreed to be theirs someday. This will result in less tenant maintenance calls as they will be happy to take over that burden!
If you are need help assessing your current portfolio and choosing the best strategy for you, register for the Lady Landlords Roadmap workshop today!