Rent-to-own

Rent-to-own is a model that allows the tenant to rent and subsequently have the right to purchase the property. In this post, we will discuss the advantages and disadvantages of renting with an option to buy from the point of view of the two parties involved, the tenant and the owner.

Advantages:

For the tenant:

• If it is stated in the contract, the months of rent paid can be deducted and in this way the tenants can save money.
• The purchase of the property is guaranteed as long as the tenant wants it.
• If you finally do not want to buy the property for any reason, you can always terminate the contract and look for another home.

For the owner:

• You always have an economic return, since you keep the property occupied.
• You benefit from tax advantages when leasing the property, through deductions.
• In the case of defaults by the tenant, the owner is insured thanks to the premium paid.

Disadvantages:

For the tenant:

• The purchase price is stopped, so if the prices of the property go down, it will be paid at a higher price than the market.
• Loss of the premium in the event that the property is not purchased, since it is higher than a deposit.

For the owner:

• The owner gets the money from the sale of the property in a deferred manner through the rent payment.
• You cannot sell the property to another person if there is a rent-to-own contract.

At Inmobiliaria Espígul, we are always available to our clients to advise both the tenant and the seller and find the most suitable option for both.