The best part about owning or leasing a home in San Antonio, Texas, is the favorable market conditions that exist at the moment. There are great options all over the area for buyers, sellers, and renters to take advantage of great value in a thriving city. With that in mind, there are a number of questions you’ll want to answer before diving into a rent to own lease option in San Antonio, TX. Let’s take a look at each one in turn.
Is Lease to Own the Same as Rent to Own?
Most of the time, individuals looking to buy a home require the financial instrument of a mortgage to make their home purchase payments. If you have a poor credit situation or inability to receive a large loan, then a mortgage may not be the best route. In these cases, a rent to own lease option might be a great alternative.
In a rent to own option, you simply rent a home as you normally would, but with one notable and very important exception: you have the option to actually buy the home prior to the expiration of the lease. Leasing to own and renting to own essentially mean the same thing. In both cases, you pay monthly to stay in the home while having the option to buy the home itself before the rental or lease agreement expires.
How Does the Rent to Own Process Work?
There are several parts to a rent to own process, each of which is very important and can have positive or negative repercussions for the future of the renter/leaser of the property. The first step is to determine whether the agreement will be a lease-option or a lease-purchase.
Lease-options allow the renter the option to buy a home before the expiration of the lease. Lease-purchases typically require the renter to buy a home at the lease expiration, regardless of whether they are financially able to afford doing so. Because of this, take extra care to figure out whether you are being offered a lease-option or a lease-purchase agreement before signing on any dotted lines.
The second part of the rent to own process regards the negotiation of the actual home price. There are two ways that the price of a house can be determined in a lease-option or lease-purchase scenario: at the time of lease signing or after the lease expires. If the prices of homes in the area where you are renting seem to be on an upswing, you might want to consider nailing down a price at lease signing to ensure that you don’t pay an exorbitant cost for the home after the lease expires.
The last primary point to consider is whether the rental/leasing payments will be applied to the purchase price of the home. In most cases, the total amount of rent will not be credited toward the home purchase price; instead, a percentage of the rental payments will be applied. For instance, if 20% of the rental payments is applied, and the rent is $1000/month, then $200/month will ultimately be credited toward the home payment if you choose to buy the house at the end of the lease. All of these points are important to consider. Make sure to hammer them out as clearly as possible (with no ambiguity) before signing a lease.
Who Is Responsible for Repairs in a Rent to Own Situation?
Another important point to consider is who bears responsibility for home repairs in a rent to own or lease to own agreement. In nearly all cases, the landlord (homeowner) pays for any repairs needed to a home during the lease-option or lease-purchase rental. While this is usually the case, you will still want to go over the rental agreement to determine this with certainty. The last thing you want is to think you will be covered and end up on the hook for a major repair.
Contact the Experts at San Antonio Luxury Realty
Are you planning on buying or renting to own a luxury home in the San Antonio area? There are homes for sale in San Antonio for people at every budget and home style preference. To make sure you secure the best deal – such as the best price and clearly spelled out, favorable terms — use the services of professional realtors who specialize in San Antonio luxury home rentals.
San Antonio Luxury Realty also has the experience and expertise needed to help you with renting a home in San Antonio. We can help you to quickly and easily find the best rent to own homes. San Antonio has a booming market. To get ahead of the game, let us help you. We can guarantee that you will rent at the best price for homes for rent in San Antonio. Get in touch with San Antonio Luxury Realty today.