Over the past 2-3 years, we have slowly converted many of our traditional long-term rentals into rent-to-own properties, and here’s why…
As maintenance and management expenses increased over the past few years, we noticed that our monthly cash flow was decreasing and our ROI was going down across our long-term rental portfolio, but we weren’t sure what to do about it.
Then, an organic opportunity started to appear. A couple of our contractors approached us about helping them purchase houses, so we found a way to finance their homes without them needing to use a bank.
Then, word slowly started to spread via word-of-mouth that our company provided this service (even though it was not an official line of business). And, before we knew it, we had a waitlist of clients wanting to purchase houses with our “program.”
So, we got to work to professionalize the program; we added some systems, appointed a program manager, and came up with some basic marketing, and we officially started our Rent-to-Own program.
Shockingly, we have had consistently high demand for this program since its inception, and the ROI is AMAZING!!
We still have all the amazing tax benefits of owning rental properties without any of the maintenance and management headaches that we have with our long-term rentals.
This strategy does not work in every market and it might not be the right answer for everyone, but if you are suffering from any of the headaches associated with high maintenance costs and decreased cash flow, it’s worth investigating whether a pivot into rent-to-own might help you.
If you want to learn more, fill out this form and our team will be in touch.