Things To Consider Before Signing Contract for Rent to Own in Perth

Rent to own in Perth is ideal for people who do not qualify for a mortgage loan. With the scheme, you got to move into the house immediately; and get some years to build good equity. Usually, this agreement lasts for 2-5 years. Cost-wise, there is an upfront option fee along with the monthly rent payments to the house owner. After the lease agreement expires, you have the opportunity to buy the same property.

Sounds great, right? However, before you jump right into signing the contract, there are some things you should protect yourself from; and to do that, make sure you follow these guidelines:

Get Home Inspection When Rent to Own in Perth

Doing a home inspection ensures the property is up-to-the standard and has no substantial problems. In case there are any problems, you can get the property owner to pay for them before you move in. Also, it will help you find out if there are issues in the foundation like roofing, etc. Always look for a house in excellent condition, or else you’ll end up spending more money on the repairs when you escape the rent trap.

Don’t Forget About Home Appraisal!

If the seller is pricing the house above its actual price, it’s hard to get a mortgage against it. Lenders are not willing to offer the loan if the purchase price is above the exact cost. Therefore, a home appraisal will be helpful to negotiate with the seller about the price.

Do Research

Investigate the owner over the internet. See if there is any information about them or if any customer has a complaint against them. It is essential to know if they have any, as you can address it with the owner. Also, look if the property owner has any previous lawsuits.

The next thing on the list when rent to buy homes in Perth, WA, is to check if the house itself has any due tax payments.

Let A Professional Review the Contract for Rent to Buy Houses

Before signing any contract, have a professional review the agreement and help you out. You can either contact a real estate attorney or reach out to experts like Stop Renting Perth. They will help make sure there is nothing illegal in the contract, and the terms are promising.

Negotiate, Negotiate & Negotiate!

Luckily, this scheme has no standard rules yet, so almost every financial aspect is negotiable. The purchase price, monthly rent, and option fee will vary with each seller. Talk with the owner to see if they agree on reducing the cost. The negotiation for option fees should be the priority as it is non-refundable. Try to keep this amount as lower as possible to reduce the risk.

Rent to own in Perth is no doubt a feasible option for many. However, some things need to be taken care of before you sign off the contract. We hope this guide will help you through your process.

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