Rent-to-own in Ontario

Do you have some real estate property to sell, but can’t seem to find a buyer? Would you like to rent it while you wait for the demand to grow? If you’re interested in the above, a rent to own program may just be what you’re looking for.

What is rent to own?

Being similar to a lease, rent to own allows you to put a tenant in your building and enjoy rent for an agreed on period of time. At the end of this period, the tenant has the option to either buy your property or return it to you.

Because usually this agreement does not require clients to pay the full sum up front or to use a mortgage, there is a higher demand for it. Often, a piece of the monthly rent gets summed up and used in the purchase as credit, making it easier on the client’s wallet but just as profitable for you.

The benefits of rent to own from property owner’s prospective.

From a rent to own program, you stand to gain the following:

1. A monthly rent.
If rent credit is added to this sum, it will be even higher than normal. Also, since the client risks loosing this investment if he does not purchase the property at the end of the contract, he will be more likely to do so.

2. The sale of your property.
As stated above, if your customer has agreed to a rent to own contract, s/he is most likely determined to purchase your property at the end of it. Otherwise, s/he could have chosen to simply rent a piece of real estate instead.

3. The ability to gain money off your property while waiting for the real estate market to improve.

The market for real estate changes from year to year due to economic reasons, interest rates, politics, demographics, etc. If you’re unhappy with the current selling price of your home, waiting a year or 2 may change the situation drastically. If your tenant does not purchase it at the end of the rent to own agreement, you will have won plenty of time for other buyers to appear.

However, even if he does purchase the property, you are still in control. In a rent to own agreement, you can choose to negotiate the selling price of your house at the end of the contract allowing you to do it when the market value has risen. If you believe the value of your real estate will plummet, you can negotiate it in the beginning as well.

Where to start?

Alex Moshkovich is the sales representative of the Ontario based Real Estate for Canadians company. Supported by a network of over 900 investors and the authors of the best seller “Income for life for Canadians,” he is now offering his vast experience and accumulated knowledge to those looking to make a profit from real estate.

If you’d like to learn how to use a rent to own agreement from the best in the business, visit Alex’s website at www.realestateforcanadians.com