property management - Orlando and Clermont Real Estate

If you’re looking at homes you may find work come across a “rent to own” home or as a seller you might be interested in this type of option but are not sure how it works or how to go about buying or selling your home in this fashion.

Rent to own homes are properties in which a buyer is permitted to rent a home for a specified amount of time with the option of purchasing that home during that timeframe. The price, along with the contract is also settled before the rental lease begins. If the buyer chooses not to buy the property, the property and any rent credits collected will go back to the seller. Unfortunately, the seller will then need to consider trying to resell the home to someone else.

These situations were great for buyers that may not be ready financially to take on a mortgage or that are rebuilding their credit and cannot qualify for a mortgage just yet. These also work well when the housing market isn’t performing as well as it should be. Many sellers will turn toward the rent to own option. This is a unique offering from the seller if the buyer is hard-pressed to find a home elsewhere or even a mortgage. If the seller doesn’t need to actually get rid of the home, they really don’t have a lot to lose at this point. If the buyer decides that they are not interested in buying the home at the end of the leasing. The seller will get the home back and will have received all of the monthly rental payments that the buyer had been making.

[More: How to improve your credit score in order to buy a house]

Depending on the housing market and the demand, most rental payments will cover housing expenses such as a mortgage, property taxes, insurance and maintenance. If the buyer decides to purchase the home, all of the rental payments made thus far will go towards the down payment or purchase of the home itself. The seller can either keep these funds in a separate account rolling them over to the buyer or deduct the rental payments from the cost of the home at this point.

Here are some important factors to consider when choosing a rent to own property.

There has to be an original agreement on the purchase price. Both the buyer and seller need to come up with a final price that they both agree upon. The terms are final and usually cannot be changed once the lease begins.

This option also eliminates the option for other buyers. The rent to own buyer will pay an “option fee”, which is negotiable and gives the buyer the option to purchase the home at a later time. This fee also prevents the seller from renting the home or selling the property to anyone else.

Once the final price is agreed upon and fees are paid, it is at this time that the tenant occupies the home. Generally, rent to own homes have terms of about three years, which gives the buyer a substantial amount of time to get their financing in order and fulfill the terms of the agreement.

Each month, the buyer will pay the rent, which goes toward a credit to be applied towards the purchase price of the home. If the buyer decides not to sell, that credit will stay with the seller and not be returned to the buyer. If the buyer does not follow through, the stand to lose thousands of dollars by not making the purchase but, this is not necessarily a bad thing. Situations change, things come up and perhaps this is not where the buyer actually wants to live permanently. This is really no different than making a rental payment each month except that the seller will now need to either reprint the home or put the home back on the market.

There are a lot of benefits for both the buyer and the seller in a rent to own option. The buyer’s credit will often be less of a deciding factor when qualifying for the purchase and their down payment may be smaller depending on what the seller will agree to. Sellers can also benefit because they are earning monthly cash if they don’t need to sell the home right away. Another perk for the seller is not the buyer will likely take better care of the home knowing that they may eventually own it themselves.

[More: Which is better? Renting or Buying?]

There are three parts to a rent to own agreement: the rental agreement, which outlines the terms associated with the tendency, the option agreement, which identifies the period by which the buyer has time to consider purchasing the home, and the sale contract, which identifies the term of sale and purchase price.

If you’re considering a rent to own option it’s also a good idea to speak to a real estate broker or agent that specializes in not only buying and selling real estate the property management as well. We can help you facilitate the transaction, talk about the pros and cons for your situation and help you execute the terms for a rent to own option. – More: A Real Estate Agent who is also a property manager

Whether you are a buyer or seller, if you have questions on rent to own properties in Clermont, Winter Garden or Minneola or surrounding communities in Orlando Florida contact me today.

A good property manager can actually enhance the value of your rental property. Finding the right property manager takes a little bit more work on the landlord’s part. When looking for a property manager for your Clermont, Winter Garden or Minneola home, you want to choose someone that not only has experience but a proven track record of increasing your property’s value. Here are some great ways that the right property manager can enhance the value of your property.

Keep your property rented.

If you live outside of the area or perhaps even the state, it can be difficult to maintain and manage your own rental property. This is where a property manager comes into play. Not only do they seek out and find the best tenant for your needs but they keep the property rented. A property manager will collect the rents, keep the renters accountable for payments and if they move out find another renter as quickly as possible. This takes the burden off of your shoulders and keeps the property rented. A property that is vacant for long periods of time can be an eyesore to potential renters.

They make it easy for potential tenants to rent the property.

A good property managers easily accessible and makes the property easily accessible when needed. They offer applications with quick turnaround, ease of access to the unit, proper marketing and advertising of the unit and communicates well with potential renters.

A property manager maintains the property.

The best way to get a property rented is to show it well. If the property does not look clean, touched up, organized and uncluttered, most tenants will simply drive on by. Good property managers will make sure that the property is rent ready my fixing up the landscaping, correcting damage and sprucing up the curb appeal in the inside as much is possible.

Property managers manage more than just the renter.

Property managers do a lot of tasks behind the scenes including reporting, accounting, profit and loss statements, balance sheets and rent rolls and monthly property summaries. This helps property owners understand what’s being spent, how it’s being spent and if they are earning cash flow each month.

What to look for in a property manager

When seeking out a property manager don’t want to make sure that they have reliable vendors who are licensed and bonded to take care of any damage or repairs that are needed. Double check that invoices are clearly marked. Good property managers conduct spot checks on properties to make sure work has been completed in the property is being maintained. Ask for some referrals and references and talk to the vendors to see what their report is with the property manager. Property managers focus on preventative maintenance and understand customer service, landlord-tenant laws, maintenance terminology and how to handle an emergency.

When you find a great property manager they are worth their weight in gold. If you’re looking for property managers throughout the Orlando area please contact my office today. I’d be happy to conducted over the phone consultation about your rental property and I’d be happy to meet with you anytime.

How Does a Rent to Own Home or Lease Work?