Renting apartments for sale - pros and cons

Long-term rent is one of the most obvious solutions to the “housing problem”. Although many are quite skeptical about renting a home, they are guided by the principle: it is better to save money every month for your own than to pay rent for rent.

It is quite logical, but you still need to live somewhere while you save up. If there is no way to save or take a mortgage, you can try rent an apartment followed by a buyout. This is the same way of buying a home as participating in shared construction or purchasing a "secondary". The only difference is that such real estate transactions are quite complex and intricate, and sometimes risky and therefore not very popular. Well, this topic needs to be dealt with in detail both on the part of the tenant and the owner. By the way, if you are thinking about buying real estate, we recommend contacting best luxury real estate agency THE Capital.

What is the meaning of a lease to buy an apartment?

Long-term rental of apartments for purchase attracts not only those who plan to buy their own housing. Imagine a situation: you are the owner of not the most liquid real estate. For example, odnushki on the first floor of an old five-story building located on the outskirts of the city. It is almost impossible to sell such housing quickly and profitably. What to do? Try to rent it out with a subsequent purchase.

The deal goes like this:

1. Between the owner of the apartment and the buyer is a contract for renting an apartment for redemption. It clearly states the amount of the monthly payment and the timing of payments.
2. The buyer regularly pays the rent and part of the purchase price of the property.
3. After full payment of the price of housing under the contract, the buyer becomes the owner.

Having a contract is very important. It is only necessary to think over everything very carefully and consider each of its points separately.

Who can benefit from renting an apartment for redemption?

The conclusion of the transaction brings benefits to all its participants:

1. The tenant receives the full right to use the leased property, change it at will, sublease it and more.
2. The landlord gets a permanent tenant who will pay him the agreed rent for a long time.

Why is renting an apartment for redemption not very popular? The fact is that when concluding an agreement, none of the parties will be able to accurately predict whether this transaction will be beneficial for each of them. And the main danger is the behavior of prices in the housing market. Prices rose - the seller bears the loss, decreased - the buyer. In market conditions, when the cost of housing at any time can change in one direction or another, it is almost impossible to guess the price. However, no one forbids agreeing on monetary issues in the contract. For example, the parties to a buyout apartment lease transaction may agree that monthly payments will be indexed based on inflation.

And this is just one example, there are many more “pitfalls” when renting an apartment for redemption. To minimize the risks, one should count the development of the event several steps ahead. That is why it is sometimes easier to enlist the support of a team of experienced experts than to do it yourself. Use the services of the real estate agency THE Capital. Specialists will draw up the correct contract, check the legal purity of the transaction and settle all issues related to renting an apartment for redemption in Kyiv. Subscribe to our updates real estate blog and get the latest publications from the real estate agency THE Capital.