Turnkey RENT TO OWN - Does anyone do this?

Question

Hi Landlords, and wanna be landlords,

Does anyone provide a TURNKEY Rent to Own?

The typical turnkey property is a long term buy-and-hold.

Buy-and-hold is good but rent to own is good for the BIG chunk of cash on the back-end. Also, with rent to own, maintenance and repairs are the responsibility of the tenant so that's additional cashflow and less headaches.

Thanks in advance!

Jeff B. · Answer

RTO is an OPTION to purchase at some future date, with a fully negotiated price at the time of the rental.  It has special requirements, so be sure you're FULLY informed before you jump into this.  The safest way is two separate agreements, the lease and the option.  There is some concern where a portion of the rent is accrued toward the purchase.

James Wise · Answer

Rent to own is a little scary to me. I had another broker in Cleveland contact me about something similar to this. In his model he buys, renovates, puts a rent to own tenant in the property, then sells to out of state investors.

He wanted Holton-Wise to handle the property management once he found an investor buyer. We turned down the business because the whole scenario seemed to have a high risk of trouble and legal ramifications.

The lease agreement and the option to purchase are seperate, ok no problem but my issue with all of this is the seller thinking they can push repairs onto the tenant/buyer. A tenant can't waive the rights they are given via landlord tenant law and they are still technically a tenant, they are not yet an owner they simply have an option to purchase therefore the owner would still ultimately be responsible for the repairs of the property.

Kevin Crowell · Answer

Ive done this several times and it actually provides a better tenant renter. I currently have two of them available in a decent area if interested Thanks and good luck. Any questions feel free to hit me up!

Jeff B. · Answer

re repairs; Spot on.  A tenant is still a tenant UNTIL they exercise the right to purchase AND then close.  My lease prohibits all repairs as I could never be sure of what quality of  work or if permits were obtained.  To use RTO is a marketing ploy which is a choice, but to exclude rights to repair is also :)

Thomas Barksdale · Answer

Do you mean first & last month up front cash flow.

Turnkey RENT TO OWN - Does anyone do this?

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