While renting back when selling your house may not be the first thing you think of when selling your house in Ontario, it can be a beneficial option in the right situations! If you want to access some equity in your house quickly while looking for a new place to live, consider the many benefits a Sell House and Rent Back Option can offer you!
How Does Sell House and Rent Back Option Work?
Sell House and Rent Back Option is an easy process when you require cash quickly but don’t have a new place to move to after you sell your house. You sell your house with a quick closing date or whenever you want so that you can have access to cash with an agreement about how much you will pay for rent for a specified amount of time. It’s a stress free option for many home sellers as they now have cash to pay for the rent through the sale of their home.
Term of The Contract
When you use a Sell House and Rent Back Option, you enter into an agreement with a Cash Buyer, there are a number of terms that will need to be agreed upon before the contract is signed.
Lease Term
How long will you be able to rent the property? Typically, the rental period will last 1-3 months while you look for a new place to live. Sometimes the sale price of your house and potential rent rates will make sense for a long term rental, but that needs to be looked at on a case by case basis.
Deposit.
In many cases, a Cash Buyer will hold back a small amount of cash for security until you move out as part of the agreement when selling your house using the Sell House and Rent Back Option. Home sellers don’t mind this as they also get the cash they require to move forward with their lives. Sellers get cash on the closing date before they need to move out.
Monthly Rent
Rent amount is agreed upon during the sale of your house that works for both you and the buyer. Or we can work it out so there is no rent payment and the purchase price simply accounts for you staying longer after closing and getting your cash.
Maintenance
You no longer have to worry about maintenance of the house. Maintenance and renovation will be completed by the buyer after you move out.
Taxes
The buyer will take on the property tax payments as soon as you sell your house which alleviates a large cost for you as a homeowner.
What Are The Benefits of a Sell House and Rent Back Option?
Sell your house quickly
When you use a Sell House and Rent Back Option to sell your house in Ontario, you will be able to sell your house as quickly as within 5 days. As such, you are able to look after your cash needs quicker. Yes, you can get the cash out of your house within 5 days and you don’t have to move out.
Place to live
Homeowners require access to cash quickly because of many reasons. Reasons include foreclosure, divorce, inheritance, renting or buying your next house, and more. These things happen more than you think. People also need a place to live. This option gives you a place to live without the added stress of having to move out when you go through a traditional sale of a house.
Some home sellers use Sell House and Rent Back Option when they are being relocated for work. They don’t want the stress of wondering if their house will sell before they have to move so they sell their house then rent until they have to relocate, which may not happen for several months.