What to Expect as a Tenant Buyer
Being a tenant buyer is different than being a renter. In a rent to own agreement, since you’re both a tenant and the future owner of the home, you’re expected take greater pride in the property and have greater responsibilities towards it, and you’re expected to uphold your duties as a good tenant as well.
While usually the mortgage, taxes, and large repairs are covered by the seller during the option period, you as the buyer are responsible for the maintenance and upkeep of your new home, just as you would be if you bought it outright.
As it is with a bank mortgage, you will be expected to make payments on time; if you don’t there can be financial consequences, such as forfeiting that month’s percentage of the rent that goes towards the purchase of the home.
Being a tenant buyer is sort of like a bridge loan between renting and homeownership. You have the obligations of being a good tenant, but you’re also held to a higher standard that you would be held to as the owner of the property.
Renting to own gives you the future opportunity of homeownership while grooming you for the responsibilities that come with it.