What Is Rent-To-Own?
A Few Things Buyers Need To Understand About Rent-To-Own Programs
- Rent-to-own programs are not long-term. They usually last for one to three years.
- The programs may differ from building to building, so it’s important to understand the terms and conditions of each program.
- Depending on your rent-to-own contract, you may be obligated to buy the apartment when your rental lease is up.
- Since a portion of your rent is usually applied toward the price of the property, the rent is higher than normal.
- Rent-to-own contracts are complex and require more paperwork, which results in more documentation costs.
- These programs allow you to move in and get a feel of the property you like even if you are unable to afford it right away.
- It’s also ideal for those who are also working towards building/improving their credit score to get the right mortgage rate. They may start paying towards an apartment one or two years before they can secure the right mortgage to buy it.
- There may be more co-op apartments available for rent-to-own than condos.
Is Rent-To-Own A Good Option For You In NYC?
Two Rent-To-Own Contract Types
The good part about such a contract is that if the contract allows it, all of your rental payments can be counted towards the purchase price. But that’s a binding contract, and if you are not a hundred percent sure about the apartment, you should not execute this contract.