For those who may be ready to sell yet can hold onto a house that is ready for rental purposes for a few years longer, selling via the rent to own in the case of Alberta provides some perks that make rent-to-own an option worth considering.
There is a large buyer pool waiting for these opportunities, seeking to attain the lifestyle that homeownership affords before they’re ready for a mortgage. In these turbulent times, it is quite tough for this generation to afford a house the traditional way, which is why they are turning towards rent-to-own options. Read on as we explore five benefits of selling your house via rent to own in Alberta.
Equity
One benefit of selling your house via rent to own in Alberta is in the equity that will build over the time of the contract so that when your property closes, you will make more significant gains on the sale. By selling directly to a local home buyer like those at Alberta Property Buyers, we can help you understand the projected returns you can expect. We can also assist in helping you with connections with reliable professionals when it comes to finding who you can give your property for rent-to-own purposes.
Speed
Another benefit of selling your house via rent to own in Alberta is that there will be no delay in your receipt of the deposit funds, and your steady cash flow will begin immediately, offsetting any costs of holding the house. The only time consuming aspect of the rent-to-own process will be finding the right person to rent-to-own to. You want to be quite diligent when it comes to the process of qualifying and researching individuals, so that there are no issues in the future. Conducting thorough research on the applicants, looking into their backgrounds when it comes to their employments and previous housing, and meeting with them personally if possible to gauge their personalities and vibe is integral to the success of finding the right person or family to rent-to-own your property to.
Rental Income
Much like squeezing the final precious drops of cash out of your house, with rental rates quickly rising, you could gain a significant boost in returns on the investment you have made in the house before finally exiting the property. Rental premiums, added to the monthly rent, are another benefit of selling your house via rent to own. If the buyer exercises their buying option, the rental premium applies towards the downpayment. However, should the buyer fail to exercise the option, you’ll keep the option fee you charge for their down payment and the premium payments.
Property Management
Another benefit of selling your house via rent-to-own in Alberta is that, unlike typical rental properties, there will be minimal for you to do in the role of landlord other than receive your income. Therefore, you can design the contract to negate the impact of routine repairs and maintenance. Most of these expenses will fall upon the tenant, who will treat the property as if it was their own. Often, there is a top-dollar limit on the repairs for which they’re responsible. Considering that the tenants are living there with the purpose of owning the property one day, most of the duties that would otherwise fall on a landlord like mowing the lawn, plowing the snow, or minor repairs, will be the responsibility of the tenants themselves.
Additional Savings
Another plus of rent-to-own sales is that you won’t be paying the monthly mortgage and utilities you would be responsible for during a listing period on the market, saving you even more.
If you’d like to talk to one of our seasoned pros about the benefits of selling your house via rent-to-own, we’ll answer your questions or concerns with no obligation. The team at Alberta Property Buyers is proud of our work helping our neighbours here in Alberta solve problems, and we want to ensure that you understand how the rent-to-own process works, and if it is the right fit for you, before you pull the trigger on that option.