Rent to Own

[Landon]

I have been approached with people who want to rent-to-own one of my vacant properties in Calgary. I was hoping to find some sort of sample contract in `critical forms` but did not. I am also looking to find out what benefit this would be to me, and any direction or advice anyone has.

 

[JimWhitelaw]

Can`t help with sample docs, but the typical benefits to the seller are:

Fewer tenant problems - they should treat the property like their own because it is / will be.
No maintenance - Tenant buyers take care of that.
You can lock in a specific selling price that includes your desired profit margin.
Some tenant buyers will default (I`ve read as many as 50%) and lose their deposit - $ in your pocket.

 

[markl]

A few other advantages

Higher monthly cash flow especially because they are paying the maintenance costs and no need for property management.

Up front deposit we usually get any where from 2 - 10% of the value of the property if they are approaching you and the house is in the $300k range $10k is a reasonable number for deposit.

I can share my agreement with you it is for Ontario so you will need to get it revised by a lawyer in AB. If not ensure your contract is minimum 2 documents one a lease and the other a separate option to purchase the property.

Email if you would like the document.

Regards,