As an owner of a rent to own house, you have a passive source of income since you only have to find the right people to rent out the property. Payment will just come in every month on the agreed date.
In fact, this is one of the highly recommended sources of income especially for people who are close to retiring from work or those who have excess properties.
Instead of having the house lying there around the corner, make it work to your advantage that you are reaping the benefits of what you have invested in the house.
Aside from collecting rental fees monthly, being a landlord can be quite handful. First of all, finding the right and responsible occupants can be really a major difficulty. Of course, you would prefer tenants who would take care of the property as much as you do.
They should be credible enough to have the buying power although initially you can ask how much they are earning a month. You may sound like more concerned on their money but that is how business go. How can you entrust the rent to own house to people who cannot even afford to pay monthly dues.
As a landlord, you must be smart enough to deal with people who would love to bargain for smaller house rent, lowered deposit amount, or other matters where they can get a discount. You must realize that you are in the real estate business and situations like this normally occur.
So, being a landlord is also equivalent to becoming a reasonable and wise businessman.
If worst comes to worst, being a landlord would also mean having to ask your tenants leave the property if they fail to comply with the payment schemes. It is unavoidable that your tenants may lose their job or something similar.
In effect, they lose their buying power and make some lame excuses just so they do not get kicked out of the rent to own house. You have to be prepared for this, as a landlord. If you think you can spare them a few weeks to find a new house or a job, it really depends on you on how you make the necessary changes in your agreement.
As a landlord, you must be open-minded enough that your tenants would sometimes bring in their pets. Make sure that you include this in their contract or agreement. If in case damage to the property will be caused by the pets, the tenants should be responsible enough to shoulder the repair cost.
It is also important that you make the rules clear as much as possible. There is always a chance of getting bad and irresponsible tenants. So, it would be to your protection as a landlord to set things straight, give them the limitations and the scope of your agreement that concerns the rent to own property.
You are still the owner not until the tenants have completed the necessary payment to declare the house as their own. Therefore, lay your cards clearly and take care of the legal documentations carefully.
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