Are you ready to sell your house in Detroit? As an alternative to traditional home sales, the rent to own market is not one to be overlooked. A great number of people are now finding themselves with bad credit and are in a position of renting rather than owning a house for the first time in many years. Has your property been sitting on the market? Are you a landlord with tenants that are interested in owning your property? Unsure what to do with an inherited property? There are many reasons for selling in today’s market. Why not take a moment to consider entering into a rent to own agreement as a viable option! Through a rent to own agreement, you have the advantage of maintaining control of the property and setting the terms of the agreement, generally for a period of 3 years. Should your property need repairs, many of these tenants opt for “elbow grease” credit for work completed on the property. We will look at 5 reasons why property owners should sell their house in Detroit with a rent to own agreement.
Higher Price
Because you’re willing to work with your buyers, despite any issues they may have in qualifying for conventional loans, you’re in a position to demand more for your house. Likewise, because you’re locking in the price for the term of the lease, despite any downward trend in real estate values, you can set the rate at an estimated higher value, determined by the length of the agreement. The ability to sell now for a higher than average market value is another reason why homeowners should sell their house in Detroit with a rent to own agreement
Expanded Market
Many buyers are finding themselves with less than perfect credit after going through a financially unstable period in the economy and leaving many previously potential buyers, unable to obtain traditional financing. Likewise, people who may normally have been quite happy as renters are making the move towards a more permanent residence, cutting down on moves. By opening your potential market wider, you’re much more likely to resolve any financial woes while helping a family transition from renters to homeowners, making them highly desirable as occupants of your property. With a broader buyer base, your home is much more likely to sell while others sit on the market losing value, this is why homeowners should sell their house in Detroit via rent to own.
Continued Tax Deductions
While some income you receive may reduce the deduction, you may still claim tax deductions on the property. Any interest on loans for improvements to the property can be written off. Along with the ability to write off interest on any remaining mortgage loan you carry, you’ll also continue to benefit from depreciation. This benefit as the owner of record is another reason why homeowners should sell their house in Detroit with a rent to own agreement.
Income Stream
Given your ability to hold the property, rather than an outright sale, you’ll be able to earn a steady income stream during the term of the agreement, while the tenants rebuild their credit to purchase the home. In addition to the profit, you’ll realize from the sale, you can also charge a higher monthly rent rate than average. While a portion of the rent income will apply towards your buyer’s investment, the remainder of the passive income can help you to continue to live your dreams or even invest in more real estate.
Pride of Ownership
As your buyers will become owners of the property, the likelihood of the home being well cared for is higher. You’ll find that without any prompting, maintenance and routine tasks are carried out. Damage is prevented because they’ll be acting quickly in the event of plumbing emergencies, roof leaks, and other potential disasters. Unlike renters, a rent to own agreement means that your tenants can be made responsible for repairs and maintenance. Knowing your investment will hold its value because your tenants care about the property brings peace of mind.
Fluctuations in the real estate market can be very concerning, one advantage of selling via rent to own as a seller, is locking in the future sale price of your home. You’ll have the best of tenants you can rely on treating you and your property with respect because they’ll be the future owners!
