Rent To Own Questions
I've been doing some homework on how Rent To Own for a landlord works and have a few questions for anyone with experience doing multiple RTO deals.
1. What is the percentage of renters who actually follow through with the option to buy at the end of their lease vs. those who walk away?
2. Who's responsible for maintenance? I've heard it both ways so it sounds like it'll depend on how you write the lease agreement. I like the idea of the tenant being 100% responsible, but I've heard it might not hold up in court. Another great idea is having the tenant be responsible for repairs under $500, and the landlord is responsible for the rest.
3. Do you list your RTO properties for rent or for sale? What websites get you most of your leads (Zillow, Trulia, Craigslist, MLS, etc)?
4. How do you set your option fee? I've heard 5%, 10%, or a flat fee like $5,000.
5. What are the pros/cons of doing RTO and potentially selling a good rental in 3-5 years vs. holding the property long term.
Thanks in advance!