There are many pros and cons to rent to own programs. While they’re not for everyone, they definitely serve a purpose and help many families on the road to homeownership.

Rent to own programs in Tampa Bay, Florida have become increasingly popular in recent years as a way for individuals to achieve homeownership. These programs allow renters to live in a home while working towards purchasing it over time. However, like any real estate decision, there are pros and cons to consider before deciding if a rent to own program is right for you.

According to a report by the Tampa Bay Times, the median home price in Tampa Bay has risen to around $400,000 in 2021, which is significantly higher than the national average. This makes it difficult for many first-time homebuyers to afford a home, even with a low unemployment rate and a strong market.

Rent to own programs can be a great option for first-time homebuyers who are struggling to afford a home in the current market. These programs allow renters to live in a home while working towards purchasing it over time. However, it is important for renters to carefully consider their financial situation and the terms of the rent to own program before committing to a long-term purchase.

Pros of Rent to Own Programs

One of the biggest pros of rent to own programs is the ability for individuals to build credit and save for a down payment. Many renters may not have the financial means to purchase a home outright, but by participating in a rent to own program, they can work towards building their credit and saving for a down payment while living in the home they hope to purchase. Rent to own programs can provide renters with the opportunity to work towards these goals while living in the home they hope to purchase.

Another pro of rent to own programs is the ability to test drive a neighborhood. Renters can live in the home and neighborhood they hope to reside in, and get a feel for the area before making the longer-term commitment. This can be especially beneficial for individuals who are moving to a new area and want to make sure they are comfortable with the community before making a large financial commitment.

Cons of Rent to Own Programs

However, there are also cons to consider when it comes to rent to own programs. One of the biggest cons is the possibility of the home being sold to someone else before the renters have the opportunity to purchase it. This can be the case depending on the arrangement in-place with the landlord. In some cases, if a renter is not able to purchase the home within the average estimated time it would take the seller to sell it on the open market, they may lose the opportunity to do so.

Another con is that rent to own programs can be more expensive than traditional renting. Renters may be required to pay a higher monthly rent, as well as additional fees, in order to work towards purchasing the home. This can make it more difficult for renters to save for a down payment and purchase the home. Also, if there is a pre-agreed purchase price, it could possibly be higher than the market rate for the home when it comes time for the renter to buy the home and they might have challenges getting financing for the purchase with a price that’s above the lender’s appraised value. 

Overall, rent to own programs in Tampa Bay, Florida can be a great way for individuals to achieve homeownership, but it is important to weigh the pros and cons before making a decision. It is essential for renters to have a clear understanding of the terms and conditions of the rent to own program and to carefully consider their financial situation before committing to a long-term purchase.

—

Are you ready to start your home search? Then it’s time for us to talk! There are many ways I can help with the process and get you on your way to purchasing your next home. You can schedule your initial buyer’s or seller’s consultation by phone or video call by clicking here.

You can click here to check out the current market statistics as well. See average home prices, average time homes are on the market and how they compare year-over-year.

Not quite ready to start your home purchase journey, but want to get a look at what’s currently on the market? Click here to search current listings in the area.