Rent to own housing is a great way for people to work towards homeownership, but it can also help improve the entire community. In today’s blog post, I want to discuss all of the benefits that rent to own can bring to a community as well as some examples of it in action.
Often, the first is that a vacant or foreclosed is bought by a real estate investor that fixes up the property and sells the home via rent to own to quickly turn the property.
The next scenario is where a developer builds a series of new homes or condos using a rent to own program to entice buyers.
The final scenario is when an individual home owner has some difficulty selling their home and decides to use a lease option or rent to own method to sell.
Good question. Well, when a neighborhood has a home that is vacant or foreclosed it can lower home prices nearby as well as attract crime and squatting and. (Yikes!)
The incentive of the quick turn around that lease options and rent to own provides for the investor can improve home prices for everyone in the area as well as prevent many problems.
Although a developer building rent to own luxury homes or condos can some what drive up the surrounding home prices, it doesn’t have quite the overall community building affect that takes place when they build a development in a economically challenged area.
There is a great example of this situation in Maryland where real estate broker Dana Ash-McGinty is working with developers renovating 20+ homes to sell using rent to own. While this has some hurdles to overcome, it would significantly improve this community in addition to providing affordable housing to families in need.
It’s always a frustrating story when a seller can’t find the right offer for their home and desperately wants or needs to move. Many times in this situation the home either remains vacant or is run through a series of tenants. While we visited the issues with a vacant home above, a home with bad tenants can be just as bad. Tenants tend to not take as good of care of the home and if evicted, may even damage the property purposefully.
In a rent to own program, the renter intends to buy the house and is more likely to take good care of the home and make nice with the neighbors.
Regardless of the scenario, rent to own can provide serious benefits to the community and in some cases helping it actually flourish.
Learn more about about our Maryland Rent To Own Program.