Rent to Own Homes and What You Should Know
“Rent to Own Homes” is a concept that is becoming increasingly popular in Salt Lake City and Utah and is essentially a lease contract with the option of buying the house upon finishing the rent-to-own period. A portion of the lease paid will go towards equity and also toward establishing or building credit. For it to be effective in Utah, a non-refundable fee is paid to the owner of the property which is usually a couple of percentage points on the value of the house.
Once this non-refundable payment is made, the buyer of the house or rent to own buyer is given the alternative to purchase the home at a settled on price regardless of the going up or appreciating value of the property. This does not mean that the rent to own buyer is obligated to buy the house upon expiring of the rent to own period, but they have the option to buy it in future in exchange for the option premium.
Rent to own homes with the alternative to buy contracts have become extremely popular in Utah. The alternative component of the funds isn’t counted as a safety deposit or towards leasing, but applies to the house to lock in the current negotiated worth even if the real estate market flourishes and prices go up.
Caveats include paying rent on time throughout the rent-to-own period in addition to treating the home as a rental during this period, meaning that you still have to ask for permission before doing any repair work or renovations. For these Utah Rent To Own Homes, the rent paid is somewhat higher than what you would pay for a normal rental house, but the reason is that some of the amounts will go into buying for the home creating a saving kind of system to help you accumulate the required down payment to purchase it.
Most of these Rent to Own homes in Salt Lake City will require being repaired from time to time by the owner of the property because the main aim is to buy the property after the rent to own homes program expires. Important repairs like the roof and structural issues remain with the true homeowner before it is taken up by the new home buyer. Many people living in Utah can attest to the fact that rent to own homes has enabled them to become homeowners through the equity they were able to build during the rent-to-own homes ownership period. Additionally, this provides a period to get good credit ratings were once affected by prior financial problems reflected on a possible buyer’s credit history.
Finally, before getting into such agreements, it’s highly suggested to find a reputed home inspector to inspect the home.
You can view the website of Utah Rent To Own Homes for more information.