Selling your property? As an alternative to traditional home sales using a real estate agent, the rent to own market is something to consider. Many people from all demographics are now finding themselves with credit history issues and can not purchase a home outright. At this point in life, they are renting rather than owning a house.
Has your property been sitting on the market and not selling? Are you a landlord with tenants that are interested in owning your property? Unsure what to do with an inherited property? There are many reasons for selling your property in today’s market. This might be the best time to consider a rent to own sale of your house. Through a rent to own agreement, you have the advantage of maintaining control of the property and setting the terms of the deal, generally for 3 years. The agreement’s length can go longer or shorter depending on what you all agree to. Should your property need some simple or complex repairs, all depending on the tenant’s skill level and desire for them to use some “elbow grease” credit for work completed on the property. We will explore 5 reasons why homeowners should sell their house in Minneapolis St Paul with a rent to own agreement.
Many want to be homeowners have difficulty getting credit from a lender to finance their own purchase. Because you are giving them the opportunity that a bank will not, you can most of the time ask more in a selling price to the buyers. If they want the house, they will pay the extra to get it. Likewise, because you’re locking in the price at the lease term, you can set the price at what the house will be purchased at in the future despite any downward trend in real estate values. The ability to sell now at a higher sell price is another reason why homeowners should sell their house in Minneapolis St Paul with a rent to own agreement
Many of today’s buyers find themselves with less than perfect credit after going through a financially unstable period leaving many previously potential buyers unable to obtain traditional financing. Coming out of a challenging year or two with the Covet 19, people losing their homes and businesses are ripe for using a rent to own option. Likewise, people who may generally have been quite happy as renters are making a move towards a more permanent residence in homeownership. By opening your potential market wider when wanting to sell, you’re are opening up an opportunity for a family to transition from renters to homeowners, making them highly desirable as occupants of your property. With a broader buyer base, your home is much more likely to sell while others sit on the market, losing value and costing money for utilities and property taxes. This is why homeowners are getting creative and are selling their house in Minneapolis St Paul with a rent to own agreement.
Continued Tax Deductions
While some income you receive may reduce the deduction, you may still claim tax deductions on the property. Any interest on loans for improvements to the property can be written off on your year-end tax return. Along with the ability to write off interest on any remaining mortgage loan, you may have. You’ll also continue to benefit from depreciation every year that you own it while the tenants to in the process of rent to own with you. This benefit you as the owner on record is why homeowners should sell their house in Minneapolis St Paul with a rent to own agreement.
Given your ability to control the property in your name, rather than having a traditional sale, you’ll earn a steady income stream during the term of the lease agreement while the tenants rebuild their credit to purchase the home. In addition to the profit you’ll realize from the sale, you can also charge a higher monthly rent rate than average. We have found that the average renter pays an additional $150 per month in taking on rent to own agreement with the hope of homeownership in the future. While a portion of the rent income will apply towards your buyer’s investment, the remainder of the passive income can help you to continue to live your dreams or even invest in more real estate, if that is your desire. This is another very motivating factor for homeowners to sell their house in Minneapolis St Paul with a rent to own agreement.
Pride of Ownership
As your buyers will become owners of the property, the home’s likelihood of being well cared for is higher compared to just renting it out. You’ll find that maintenance and routine tasks are carried out without any prompting, just like a traditional home owner would do. Damage is prevented because they’ll be acting quickly when plumbing emergencies, roof leaks, and other potential disasters start showing their ugly little heads. Unlike renters, a rent to own agreement means that your tenants can be responsible for repairs and maintenance. It all depends on how you write the agreement. Knowing your investment will hold its value because your tenants caring about the property brings you much peace of mind. This is an important reason homeowners should sell their house in Minneapolis St Paul with a rent to own agreement.
Fluctuations in the real estate market can be very concerning, as we have seen back in 2007 and 2008. Today with coming out of the covet 19 era, many prospecting home owners can not buy a home with traditional lending. This adds to your advantage of selling your house through a rent to own agreement as a seller is locking in your home’s future sale price. You’ll have the best of tenants you can rely on, treating you and your property with respect because they’ll be the prospective owners! As with most renters, you may see them come and go every year, while a rent to own renter is in it for the long hall. All of these are great reasons why homeowners should sell their house in Minneapolis St Paul with a rent to own agreement. Minnesota Cash Home Buyers can help you set it up, and we know how to find the perfect buyer! To learn more about us and what we can do, send us a message or call (612) 444-5088 today.