Regal Real Estate

Archive for the ‘Rent-To-Own Tenants Build Credits’ Category

A property which has a long-term lease to possess option interests a certain form of renters. These kinds of tenants want to buy a home, but are not in a position to at this time. There are 2 major causes of this. First, tenants don’t have enough downpayment, or second, they don’t have good enough credit to be able to be entitled to a loan.

You can help your tenants to obtain and be able to increase the risk for deposit. You’ll be able to provide them with an incentive in the form of rebate, also called option premium. What this means is you, since the landlord, will rebate some part of the rent on a monthly basis for your down payment. This permits the tenant to build up a sizable advance payment over the longer period of time.

If your tenants need assistance establishing or repairing their credit, you are able to report the tenant’s payment record for the credit agencies. This serves two purposes. It’s going to motivate your Lease Option tenant to pay for their rent on-time. It will help to improve their credit ratings as time passes.