Jackson Mayanja, a property manager MTK Real Estate and Mining says, during the renting period, the tenant makes deposits to the landlords, and these payments usually reduce the money needed to buy the house at a later date. If the property owner is ready to sell out his or her property, the tenants get a deal to own the property without spending more money on property agents and managers.
“Payments can be done according to the agreement either in installments or full payment on the agreed date.
“Both tenants and landlords can benefit from these arrangements, but it is essential that everybody knows what the risks are before getting started,” he says. Mayanja adds that to avoid any risk during purchase and sale, the tenant and landlord should complete the purchase more or less immediately after agreeing to terms at closing, but rent to own is different. With rent-to-own, the buyer can decide not to buy.
Erias Nkoyoyo, an innovator, says: “The tenants may discover negative things you never knew about, and they may decide not to buy. It’s advisable to hire innovators before making any deal,” he says.
Mayanja says that process is similar to a lease option because they both involve contracts.
“Both the tenant and landlord agree to certain terms, and all of the terms can be changed to fit their needs, depending on what is important to both parties,” he says.
Mayanja adds that you can request certain features before signing an agreement. For example, you might request a larger or smaller up-front payment if that would be helpful for you. He advises that you hire the services of a real estate attorney to avoid getting cheated. He adds that several fraudsters take advantage of people short of funds and high hopes of buying a home. Click here to read more