What is an RTO Agent?

 

You may have heard the term RTO Agent Near Me being thrown around but what does it actually mean? RTO stands for Rent to Own and an RTO agent can help set up a rental agreement for those who do not qualify for a conventional home loan.

 

How Does It Work?

An RTO agent will help find a property that suits the buyer’s needs and budget and then draw up a contract between the tenant and the landlord. The tenant will then agree to pay a weekly or monthly amount which will go towards the purchase price of the property.

The key difference between renting and renting to own is that with an RTO agreement, the tenant has the option to purchase the property at any time during the length of the contract. This option is normally exercisable at any time during the last 6-12 months of the contract period.

Benefits of Using an RTO Agent

There are many benefits of using an RTO agent, some of which include:

-You are not tied into a long-term mortgage so you have more flexibility with your finances.

-You have time to save up a deposit as you are not required to pay one upfront.

-You can move into your new home sooner as there is no need to go through a lengthy loan approval process.

-It is a great way to get into the property market if you have bad credit or are self-employed.

Drawbacks of Using an Rto Agent

Of course, there are also some drawbacks of using an RTO agent which include:

-You will generally pay more in rent than you would if you were renting conventionally. This is because part of your rent goes towards the purchase price of the property.

Conclusion:

Overall, using an RTO Agent Near Me can be a great way to get into the property market, especially if you have bad credit or are self-employed. However, it is important to be aware of the potential drawbacks before entering into such an agreement. If you have any further questions regarding RTO agreements, please feel free to contact our office and speak to one of our experienced agents.