If you have heard of rent to own and are wondering what it is all about, you should know that rent to own properties in Florida can provide numerous benefits. Through a rent to own agreement you will be able to rent a property for a specific period of time with an option that allows you to purchase that property at some point in the future. Many real estate investors and owners in Florida have now begun to offer rent to own opportunities throughout the state, including in cities such as Tallahassee, Jacksonville, Orlando and Ft. Lauderdale.
You might be wondering whether a rent to own option is something that would work for your situation. Through this type of arrangement you will be able to pay rent on a monthly basis just as you would with any other rental property. Standard terms typically apply to this arrangement, such as late payment fees, etc. The option price for a rent to own property is usually the purchase value of that home. In most cases, the purchase or option price will be specifically stated in the lease or rental agreement that is signed between the owner of the property and you.
Depending upon the terms of the agreement, there may also be an option price. This may also be referred to as a down payment or may be called an upfront fee. This fee is paid to the landlord or the owner of the property. The payment will be credited toward the purchase price of the house. Usually, this fee is not refundable if you decide not to exercise the option you retained to purchase the property in the future.
A rental credit may also be applied toward the home's purchase price. This credit will only be applied if you choose to exercise your option to buy the house. Keep in mind that the owner of the property is not necessarily required to hold that payment in the bank, but it can help to reduce the purchase price of the property. Depending upon the terms of your agreement with the owner of the property, this fee can also be applied toward reducing the cost of closing costs when you buy the property.
Taking a rent to own home in Florida can provide many benefits and prove to be much easier for many people when compared to alternative home financing options. Rent to own is often more readily available to many people if they have credit problems. If you know you are going to be working toward rebuilding your credit, the rental period on a rent to own can present you with the opportunity to make the corrections you need to your credit. The terms of a rent to own agreement can vary. Some of the most common terms are 12 months to 48 months. The terms can vary, so it is always important to discuss this in detail with the owner of the property. You may be able to negotiate terms that are more suitable to your situation and needs.