So, I have become a landlord and am in the process of renting out my property. I received an application from a prospective tenant and they are interested in a rent-to-own agreement. How does this work and will it benefit me as a seller/landlord?
I did a quick google search and it looks like you draw up a contract with the buyer/tenant and agree to a price to sell the house and a term for the lease. Then they pay you extra each month which goes towards their down payment and also they pay an option fee that goes towards their down payment. If they don't/can't buy the house at the end of the lease period the seller/landlord gets to keep the option fee and the extra that they paid monthly. Is this correct? If so, I don't see much downside as a seller/landlord.