Canadian Rent To Own Agreements
Leases, also known as lease option agreements, can take many different forms. “It all comes down to math,” Heath told Global News. Once you`ve considered renting, maintenance, and repairs, “is it a better option than renting and buying another property?” In the meantime, buyers can put their personal touch on a new home. You can repaint and buy furniture in accent. You can hang pictures and really make the place theirs. It`s magical for potential buyers, because they invest both emotionally and financially in their new home. Of course, this is also good news for real estate investors, because the more a tenant/buyer invests, the more likely it is that they will cross the deal. For the argument, we will say that the lease applies to a 3-year contract. The tenant agrees to pay rent of US$1,000 per month, with an additional US$500 per month charged for the down payment. This is how it will work: a tenant who wants to buy their own home may have the best intentions if they start a tenancy agreement, but the intentions do not cover your back if the tenant is late with one or both contracts.
So it`s important to check their references (talk to your employer and other references provided) so you can be sure they can cover their share of the bargain. Essentially, a homeowner or investor will rent a home that is already in their name, much like a homeowner with an apartment. Potential landlords or tenants can then rent the house and make regular payments to their landlord. .