Many prospective buyers in DC may have heard of rent to own, but are not sure if it is the right option for them. In deciding whether a rent to own option is a good choice for your personal situation, it is first important to fully understand what is involved in a rent to own agreement.
Rent to own agreements can vary, but the basic idea of this option is much like renting any other type of item such as a car. The buyer will agree to rent or lease the house for a specified period of time. At the beginning of the arrangement, the buyer and the owner of the property will agree upon a purchase price for the property. That price will be locked in and cannot be increased for the duration of the agreement. The term of the agreement may also vary. A one year term is quite common, but there are also two, three and even four or five year rent to own agreements as well. In some cases, the owner of the property and the buyer may agree upon an option price to be paid upfront for the property. This will ensure the owner will not sell the property during that time period. In this regard, it provides the owner with some additional income and offers the buyer peace of mind that they will not be ousted from the property before the end of the rental agreement.
If the renter decides at some point during the rental period that they do not want to buy the house the option price can often be applied toward the purchase price of the property, the down payment and/or the closing costs. If the renter decides they do not want to buy the property, the option price is typically non-refundable. This means the owner of the property will be able to keep the option price that was paid. In this situation, both the tenant and the property owner are able to benefit. The owner of the property is able to benefit by collecting rent on the property as well as an option fee. They are not out anything if the tenant decides not to buy. The tenant is able to ensure the purchase price of the property will not increase, even if the value of the property increases during the rental period.
Rent to own properties are available throughout the DC area. Whether you are trying to find a rent to own in Georgetown, Capitol Hill, Silver Spring, Anacostia, Dupont Circle or elsewhere, you can quickly find a rent to own property in DC by looking online. When searching for the right rent to own in DC, it is important to keep a few tips in mind. First, make sure you find a property in a district that is close to where you work unless you mind commuting. If you will be making a commute to work, make certain there is a Metro stop nearby. Finally, be sure to ask about prices and terms before deciding on a property.