If you’re looking for houses for rent by owner in Edmonton, have you considered rent to own?
Rent-to-own gives you the best of both worlds… and you don’t need amazing credit to do it!
Given the choice between renting and rent-to-own, we believe that rent-to-own is often a better choice. In this blog post, we’ll look at the 4 reasons why rent-to-own is a wonderful pathway to home ownership… even if your credit isn’t perfect. If you’re looking at houses for rent by owner in Edmonton then you may want to expand your list of options and consider a rent-to-own purchase.
Owning a home is part of the Canadian Dream… but it’s also very expensive, and not getting any cheaper. Due to rising municipal taxes, home insurance, and utility costs, many people are forced to rent. They end up putting money into their landlord’s pocket while struggling to get ahead. Wouldn’t it be wonderful if you could “rent your way to home ownership?” You can. It’s called “rent to own” and it’s growing in popularity.
NO question there have been some instances of unscrupulous individuals or companies offering rent-to-own home purchase opportunities who took advantage of people OR failed to explain all the terms of the contract. But if you work with a reputable company, the results will be as expected and outlined in the contract.
It works like this: an Edmonton rent-to-own buyer rents from a property owner, just as in a typical landlord-tenant arrangement. But their agreement is often a multi-year contract in which they agree to purchase the house during or at the end of the rental term.
THE ESSENTIAL component of any successful rent-to-own house purchase is creating and following a detailed plan to (re)build the buyers’ credit AND save enough for a down payment.
Read on to discover 5 reasons why this home ownership strategy is SO powerful…
If you’d like to learn more about Edmonton rent-to-own home ownership, or about houses for rent by owner in Edmonton, simply click here to fill out the form or call us at (587) 982-7576 and we’ll make sure you have all the info you need.
5 Tips About Rent To Own Houses For Rent By Owner In Edmonton
Rent To Own Tip #1
It can be easy to qualify for a rent-to-own property purchase in Edmonton. Unlike buying a house (which requires a high credit score and large down payment), a rent-to-own agreement can be made with damaged credit and a smaller down payment! But…it does take more than bruised credit and a down payment to qualify!
A quality RTO company such as SUNRISE HOME BUYERS will investigate the reason why your credit is in the shape it’s in. Is it because of a single life event? Or is it because of habitual mismanagement of credit? I would caution any prospective RTO home buyer if a homeowner/partner guarantees qualification or says it’s a breeze. Again, it can be simple and straightforward, but that is certainly not the case for every potential rent-to-own house buyer.
Rent To Own Tip #2
It is possible to buy an Edmonton home with poor or bruised credit. And if done properly, it provides an opportunity to actually improve your credit score! A rent-to-own agreement doesn’t require perfect credit, but it does give you a chance to (re)establish yourself financially and fix up your credit so that by the time you’re ready to make the home purchase, you WILL BE able to qualify for the mortgage.
This is THE VITAL STEP that a reputable rent-to-own company will stress in any discussions. It is ESSENTIAL that any RTO or rent-to-own home buyer CREATE & FOLLOW a plan with the owner of the home to get their finances in order and be able to qualify for the purchase.
Rent To Own Tip #3
A rent-to-own home purchase in Edmonton lets you “try out” home ownership before you actually buy the home. Some renters are shocked with the difference between renting and owning and others find it’s just what they expected. But a rent-to-own agreement gives you the ability to “Try Before You Buy” home ownership with a trusted guide to help you understand and prepare for the joys and responsibilities of owning a home in Edmonton without having to qualify for a mortgage!
But to be clear a rent-to-own purchase is NOT to be taken lightly! An RTO is a legal document that binds the buyer to purchasing the home. If you, as the home buyer fail to live up to the agreement or want to back out, you would forfeit the down payment. So DO NOT enter an agreement unless you are SERIOUS about home ownership and the responsibilities that come with it. Be sure you understand how a rent to own purchase can succeed OR fail.
Rent To Own Tip #4
Put down some roots…sooner. One of the downsides of renting is that renters feel as though they don’t have a permanent place. They’re stuck in rental agreements that renew year over year and don’t feel like they have a personal and permanent home. But by entering into a rent-to-own agreement to buy a house in Edmonton, both you AND the owner know you’re in it for the long haul. Because you are BUYING the home with a rent to own agreement, you will have pride of ownership and can make the property your home. Unlike a rental property where you need the landlords approval for all but the most trivial changes, you are free to make any renovations or updates.
Rent To Own Tip #5
If done properly, buying a home using a rent-to-own agreement is a WIN-WIN for both the buyer AND the seller. The seller is able to sell their property without paying a real estate commission and at a slightly higher price. The buyer is able to ‘take back’ some time and purchase a home one to three years sooner than they would normally be able to. They are able to lock in a purchase price AND start paying down their mortgage instead of watching their hard-earned money vanish into a landlord’s wallet.
If you’re looking for houses for rent by owner in Edmonton, you should widen your search criteria and consider purchasing a home using a rent-to-own agreement. This is a simple strategy to help you get into a permanent home sooner, and you don’t need perfect credit or a huge down payment to make the dream of home ownership a reality!