Florida Lease to Own Agreement
A Florida Lease to Own Agreement is an alternative to outright purchasing a home, allowing tenants to rent the property as normal while having the option to purchase the rental at the end of the contract’s term. Typically, landlords will require tenants to pay a slightly higher monthly rent, a portion of which serves as a down payment in the event the tenants decide to purchase said property. It is important to keep in mind that this amount is forfeited if the rented property is not purchased.
Landlords considering a Lease to Own contract should keep in mind Florida Statute § 697.01, which conveys that the agreement can be considered a mortgage if default or breach occurs – leading to the property entering into foreclosure instead of the tenant being evicted.
Are Lease-to-Own Contracts Recommended in Florida?
Yes, lease-to-own agreements can be beneficial for both the landlord and the tenant in Florida. It allows the tenant to rent the property for a set period of time with the option to purchase it at the end of the lease, reducing the risk of purchasing a property sight unseen. It also provides the landlord with income from the rental payments during the lease period.