If you want to live in Tenerife but can’t or don’t want to buy a property, there’s a solution: rent to buy. It’s a contract where you rent a property for a period, then buy it, deducting part of your rent from the price. In this post, we explain what this contract involves, its benefits, and how to find your desired home.
What does rent to own consist of?
Rent to buy is an agreement between the owner of a property and the tenant, whereby the tenant has the right to buy the property at the end of the rental period, which is usually between 2 and 5 years. The sale price is fixed at the beginning of the contract and an amount proportional to the rents paid during the rental period is deducted from the sale price. In addition, the tenant usually pays an initial premium to the landlord to reserve his right to buy, which is also deducted from the final price if the option to buy is exercised, or forfeited if it is not.
What are the benefits?
Rent to buy has benefits for both the landlord and the tenant. For the landlord, it is a way of obtaining income from the property while waiting to sell it, securing a fixed price that does not depend on the market and avoiding the costs and taxes derived from the sale and purchase. For the tenant, it is a way of accessing a property without having to pay a down payment or take out a mortgage, try the property before buying it and save money during the rental period to cover the final payment.
How to find a property to rent with option to buy in Tenerife?
If you are interested in finding a property to rent to buy in Tenerife, you can do it in several ways:
- Search on web portals that offer this type of property, filtering by area, price, surface area, number of rooms, etc.
- Consult with real estate agencies that have a specific section for rent to buy or that can get you the property you want according to your preferences and budget.
- Publish an advert expressing your interest in this type of contract and indicating your contact details and the characteristics of the property you are looking for.
Rent to buy is a contract that allows you to rent and buy a property. You pay a monthly rent and you can buy the property at the end of the rental period, deducting part of the price. This way, you save money and try the property before you buy it. The contract must state the rental price, the sale price, the period for buying, the discount for each rent and the initial premium.
If you want to know more about rent to buy in Tenerife, contact us!