When hearing the term “the American dream,” many people automatically think of home ownership. But for some, that dream may not be a reality – particularly in a market where paying above asking price has become the norm rather than the exception.
One of the ways that some renters have been able to purchase a home of their own is to enter into a rent-to-own contract with rental property owner(s). This can actually turn out to be a win-win scenario for both parties because oftentimes a portion of the monthly rent will go towards the down payment on the purchase, easing at least some of the financial burden on the tenant / buyer.
In addition, when tenants know that they are living in a property that they are purchasing in the future, they are likely to be more mindful of how they treat it in terms of wear and tear – which can equate to fewer maintenance and emergency-related issues for the current owner.
But with Orlando-area rent prices being up roughly 20% just since January (2022) – the highest increase in market history – and in some neighborhoods more than 60%, does it really make sense for you to initiate rent-to-own contracts with your tenants versus keeping your property(ies) as income-generating rentals only?
The answer is, it depends.
For instance, while you may be enjoying a healthy stream of monthly income generation – along with some nice tax deductions – now could also be a great time to sell while prices are up, putting more money in your pocket, as well as reducing the demands on your time that “landlording” can require.
If you do plan to hang on to your residential rental units, and they are located in the Central Florida locale, bringing a professional property manager on board could help to alleviate your tasks, while at the same time still allowing you to obtain rent checks each month.
For more details on how the process works – and how it could benefit you – give CFL Property Management a call or you can send us an email with any questions that you have by going to our contact us page. We look forward to hearing from you.