Google “Residential Lease with Option to Purchase” and “Rent To Own” and you will find plenty of stuff to look at
I’ve considered doing a rent-to-own but I never had to – I say ‘had to’ because I consider rent-to-own as a last ditch effort and not really a win-win situation in most cases
From what I’ve read only 20% of rent-to-own situations result in a purchase. The other 80% result in a tenant who, for whatever reason, doesn’t purchase the property and loses any benefits the option to purchase entitled him to.
In this market I think the odds of a rent-to-own resulting in a purchase are even less than 20/80 so what might you gain by doing this?
You get a higher rent – the rent-to-own tenant pays an above-market rate with the agreement that some of that money will be applied as down payment towards the purchase of the condo
Your tenant takes better care of your place because they think they will ultimately own it
At the end of the option period (two years? three?) you still own the condo but have to deal with a frustrated (and angry?) tenant.
