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RENT TO OWN
PROPERTIES: WHAT TO
KNOW AS A SELLER
As a seller, renting to own properties can be an excellence solution that ensures greater
profit and more financial stability. One of the reasons would be that most renters
seeking to buy a house choose the rent to own option because of slow financing and
low credit scores, hence sellers can potentially get higher prices for their properties,
even in a not so bright market.
Depending on the property and circumstances, the seller is also entitled to ask for
higher rent. Unexpected things happen all the time and it is important to be covered
should any occur. Additionally, much like a deposit, the fee paid by renters is non-
refundable if they fail to meet the agreement.
Another part that can be saving the seller a significant amount of money is not having
to use real estate agent services, which can be extremely costly. It’s no wonder the
industry is valued at $14 billion in Canada, with just 4% annual value increase . To put it
even more in perspective, real estate agent commissions can run anywhere between 3%
and 7% or even 10%, depending on the business and location of the property. Imagine
that if you are selling a property for $350,000, their part is about $14,000. That is an
insane amount of money out of the seller’s pocket for a service that, with a bit of effort,
they could be doing themselves.
Last but not least, rent to own properties is far less stressful than actually trying to sell
a house on the spot. The seller also has the advantage of knowing the future owners,
and because the property is about to be theirs, they invest a lot in taking care of it.