Benefits of a Rent to Own Property in Oklahoma
An Oklahoma rent to own property is a real estate agreement between a landlord and a tenant that combines both renting and buying an Oklahoma property. A rent to own property agreement is favorable to both parties the majority of the time. The advantages are numerous for both the tenant and the landlord.
Benefits to the Landlord/Seller:
• It is a chance for a landlord to sell a house to a person who may or may not have good credit. This is important since it increases the chances of the landlord getting a buyer for the property. In most cases, the tenant will eventually get access to financing since the agreement can repair their credit.
• It is a good way to do away with mortgage payments. Landlords selling their home get a tenant who pays monthly rent and eventually buys the house, completely taking it off the hands of the landlord.
• Tenants who eventually buy the property take better care of the house since they will be the eventual owners of the house. This is much better than a regular tenancy agreement.
• Ownership of the house remains with the landlord until it is bought by the tenant.
Benefits to the Tenant/Buyer:
• The tenants get access to financing options, namely mortgages in a period of between 1 and 2 years.
• A rent to buy property in Oklahoma can help a tenant to repair his/her credit. This is the case when landlords report the timely payment of rent to credit reference bureaus. This increases a tenant's chances of getting financing from banks and other financial institutions after a period of time.
• A rent to own property tenant in Oklahoma gets adequate time to live in the neighborhood. This enables the tenant to evaluate the locality and make a better decision on whether to buy the house at the end of the tenancy agreement. A rent to own property does not force the tenant to buy the property at the end of the specified rental period.
• There is only a small percentage of the sale price that you have to pay as down payment. The amount can vary depending on the contract, but is usually around 3%, a small percentage compared to the 10% to 20% that people are required to pay on a mortgage.
• A tenant's credit does not have to be perfect in order to get into a rent to own property agreement. The agreement can in fact be a method of fixing the credit of the tenant when he/she pays the rent on time.
• Tenants are able to move into the house immediately without waiting for an approval process by a bank, home inspections, etc. This process could sometimes take weeks or even longer. This is especially beneficial when the tenant doesn't have a place to stay.
• There is no obligation on the part of a tenant to get financing immediately. A rent to own property tenant in Oklahoma can wait for several years before getting financing. During this time, the tenant can work on repairing his/her credit by making timely rental payments.
Appropriate legal advice should be sought at every point of the agreement by both parties. This is to ensure that there is a legal solution for any situation that may arise. Be sure to read the rental agreement before signing it.