Mobile Home Rentals – Rent To Own
Rent to own is a wonderful way to get into the real estate market if you lack the amount of cash for a down payment and closing costs or you’re currently working on improving your credit score. Taking the time to understand the circumstances of the title and the deed arrangement are vital aspects in your rent to own contract. If you are considering an investment into a mobile home rental, this guide will walk you through the process involved in a rent to own situation.
Step 1 – Find yourself a home with a seller or property owner who is interested in working with you on a rent to own basis. Many investment property owners may not be initial fond of the rent to own idea. If you find a place that you are interested in purchasing,
discuss your mobile home rentals options with the seller. An added bonus for property owners is that the tenants who are committing to the property purchase will likely take very good care of the home during their stay.
Step 2 – Do your research. Make sure that the land and the structure are being offered as a package. Some states prohibit putting a mobile home on your own land. These states require mobile home owners to reside in a community of similar homes. In cases such as these, the home owner will have a lease agreement with the park. In the US, the most popular lease agreements are 99 year leases. These leases protect the owners from being asked to leave the property after a short period of time.
Step 3 – Figure out what you are willing to offer for the home. Buyers can arrange the rent to own contract in a variety of ways. Find out what your monthly payments will be along with the total sale price. Buyers can provide a down payment when the papers are signed or have little bits taken out each month. If you are interested in any inspections or certifications, you’ll need to have them done when the lease begins and attach them to the contract. Make sure to designate who will be paying for these services in order to avoid any surprises down the road.
Step 4 – Decide on the type of rent to own contract you are interested in. Buyers can rent for a year before purchasing or hold out for a longer span of time. Discuss your options with the seller. The property owner will have a contract drawn out which specifies the date of purchase with the lease attached. If you are unsure whether you will want to purchase at the end of the lease but are interested in the mobile home rentals opportunity, you can have an option contract written out.
Step 5 – Hire a qualified real estate attorney to draw up the contract. Make sure to bring along your notes to ensure that your points are outlined in the agreement. If you are purchasing through a realtor, they can make their own contract. Regardless, you should still have an attorney review any agreement that is presented before making a commitment on mobile home rentals.
