Ohio boasts over 5.2 million housing units, based on info provided by the United States Census Bureau.
For many aspiring homeowners in Columbus, OH, purchasing a home can feel like a pipedream. Rent-to-own homes offer a practical alternative. It allows people to transition from renting to owning their dream property over time.
Keep reading to learn everything you need to know about the rent-to-own process, its benefits, and more.
What Is the Rent-to-Own Process?
The rent-to-own process is a legal contractual agreement. In traditional rental agreements, tenants pay rent with no long-term ownership in sight. Instead, rent-to-own agreements give renters the opportunity to buy the property at the lease's end.
In a typical rent-to-own agreement, a portion of the month-to-month rent goes toward the future home purchase. At the end of the lease, the renter has the option to buy the property, often at a predetermined price.
Are you wondering how the rent-to-own process often works?
Sign a Lease Agreement
The tenant and homeowner agree to lease terms. It includes the length of the rental period, often around a few years, and the future purchase price of the home.
Monthly Payments
The tenant pays rent as usual. However, a portion of the payment gets set aside as a credit toward the down payment.
Option to Purchase
Once the lease is over, the tenant can choose to buy the home, applying the accumulated rent credits toward the purchase price. If they decide not to buy, they can move out at the end of the lease with no further obligations.
Making the Homeownership Transition
Do you want to enjoy the benefits of rent-to-own? Going from renting to owning is a sizeable financial and lifestyle change. There's no denying that rent-to-own homes provide an excellent way to ease into this shift.
Renters in Columbus, OH, who may be anxious about taking on a mortgage right away can use the rent-to-own model. Doing this can allow them to prepare for the responsibilities of homeownership.
During the lease period, renters should focus on improving their credit scores and managing their finances. They should also confirm they're ready to take on the long-term commitment of owning a given home. By doing so, they'll be in a stronger position to secure financing once the lease period ends.
Understanding the Rent-to-Own Agreement
A rent-to-own agreement is the cornerstone of the lease-to-own process. It's essential to fully review the contract before signing.
Option to Purchase
Ensure the contract clearly outlines your right to purchase the home at the end of the lease term. Double-check any conditions that you must meet.
Rent Credits for Lease-to-Own Homes
Verify how much of your monthly rent will be applied toward the purchase price. Understand how these credits will accumulate over time.
It's Time to Shop Around for Rent-to-Own Homes
With rent-to-own homes, you can level the playing field of the real estate market.
PMI Columbus offers an impressive selection of homes to rent and buy. Our Columbus team also offers holistic property management solutions for entrepreneurs.
Do you want more advice about property in Ohio? If so, don't wait to discuss the details with a PMI representative today.
