Rent Shield Protection?

[Joel]

Anyone has info on Rent Shield Rent protection?



Is it worth to take it for a Rent to Own property?

 

[Sherilynn]

Excellent tenant screening plus a large initial option payment act as your "insurance."



If you have a large initial option payment, the tenants are less likely to default because they have too much to lose. And if they walk away, you keep the option as liquidated damages, which should cover your loss. If you allow tenant buyers to take possession with a very small option payment, then it is easier to walk away, leaving you with potential losses.

 

[Joel]

I understand.



I have a 7% security deposit, but to add aditional security I want to take the insurance.



Does anyone have info on it?