RENT TO OWN A HOME – BEWARE THE RISKS
The article from the Toronto Star talks about the risks involved in rent to own. We agree that people should be 100% knowledgeable about what they are getting into. But articles like this often point out the costs of renting to own, without pointing out the benefits.
Benefits such as
– The ability to move into a new permanent family home, years ahead of schedule;
– No more worrying about the landlord possibly selling the unit or house you are renting;
– Families that are forced to move can choose a single permanent home, instead of being forced into 1 or more interim rentals before becoming homeowners;
Rent to Own is, indeed, not suitable for everyone.
Tenants should be reasonably certain that they are going to want to live in their home at least until their lease ends, and for a few years after that. After all, rent to own is about finding (and enjoying the benefits of!) your family’s new permanent home, 1 to 3 years ahead of schedule. Tenants should be reasonably certain that they are going to maintain their employment and not have to move within the next several years. Tenants should also be reasonably certain that they will follow a plan, recommended by a professional, to make sure that their credit score will be sufficient to qualify them for a mortgage at the end of their lease. It is up to each tenant or family to determine what their level of “reasonable certainty” is. For some people it might be 75%; for others, it may be 95%. To make sure you avoid all potential problems of renting to own a home, please refer to our How to Avoid Rent To Own Scams Report.