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 arrangement between a property owner and a tenant. The tenant is granted the option to buy the property at the end of the rental period, typically lasting between 2 and 5 years. The sale price is established at the contract’s outset, and a sum proportionate to the rents paid during the rental period is subtracted from the sale price. Additionally, the tenant usually pays an initial premium to the landlord to secure their right to buy, which is either deducted from the final price upon exercising the option or forfeited if not.
What are the benefits?
Rent to buy offers advantages for both landlords and tenants. For landlords, it provides income while waiting to sell the property, a fixed price unaffected by market fluctuations, and avoidance of costs and taxes associated with selling and buying. Tenants benefit by gaining access to a property without a down payment or mortgage, the ability to assess the property before purchase, and saving 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 real estate agencies with specific sections for rent to buy or those able to find a property based on your preferences and budget.
- Post an ad expressing your interest in this type of contract, including your contact details and the property characteristics you’re seeking.
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!