Looking For Rent To Own Homes In San Antonio?: Here’s What To Be On The Lookout For

Sep 1, 2022 7 MIN READ

Amanda Stevens

Reading Time: 7 minutes

Ready for homeownership but don’t want to get saddled with high down payments and the downsides of a mortgage right now? 

There are options for that! 

Rent-to-own homes are an option that gives you the benefits of being a renter for a while, while your rent payments are applied to eventually owning the home. It’s a middle ground that lets you get some of the benefits of both styles of living, without many of the downsides. 

San Antonio has a wide selection of homes available for rent-to-own agreements, and it’s one of the best cities to live in Texas! 

Want to learn more about rent-to-own homes, or want to learn more about living in San Antonio? You’re in the right place. 

Let’s talk about why you should consider rent to own homes in San Antonio and what you should look for when you’re shopping for homes.

Ready? 

Why Would You Want To Find A Rent To Home In San Antonio?: What Are The Benefits Of Rent To Own Homes?

There are a lot of reasons you might want to consider a rent-to-own home instead of a traditional rental agreement, or even in place of getting a traditional mortgage to buy a home. 

How does rent-to-own work? 

You pay slightly higher rates for rent, and the difference between your rent and the fair market value of rent on your home all goes toward your eventual down payment on the home. 

Depending on your deal there may be some additional fees in place for the option of buying the home, but on average they’re reasonable and comparable to some of the fees and costs of buying a home through a more traditional route. 

Here are some of the key advantages that come with renting to own: 

Save On Repair Costs

One of the biggest advantages of rent-to-own agreements is that you typically save on repair costs for the home. 

In exchange for renting, you don’t have to pay as much for repairs as you would as a homeowner. However, since these agreements are typically a little different from a standard lease, you do have some financial responsibility when it comes to repairs. 

Often these agreements split maintenance costs 50/50 between the renter and the owner. That way you can get some of your concerns about the property addressed before you buy, but the owner isn’t fully on the hook for expensive repairs. 

If you’re considering a fixer-upper home, rent-to-own agreements may be one of the best ways you can buy since you’ll be able to do a lot of the fixing before you actually own the home. 

More Time To Save Your Down Payment

When you’re in a rent-to-own agreement you’ll automatically get a sizable portion of your down payment from your rent payments. 

Remember, you’re paying extra money each month that goes into your eventual down payment on the house. 

That doesn’t mean that that has to be the only money you’re saving though! If you’ve got a little extra that can go into a savings account these agreements can be a great way to save a large down payment and get a more favorable mortgage. The larger your down payment, the smaller your monthly payments are likely to be when you do buy. 

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Remember, the money from your rent only applies to this home, you can’t withdraw the money you spend on a down payment in your rent to use on a different home. 

But money you set aside and save on your own can be used for any home, which means that it can be an especially good idea if you aren’t 100% sold on the home you’re renting and choose a Lease-Option contract instead of a Lease-Purchase contract (more on that later!). 

You Get To Live In Your Home Before Committing

One of the biggest advantages of rent-to-own homes in San Antonio is that they’re basically the closest thing you can get to a test drive on a home. 

These agreements let you move in, see how you would arrange the house, see what amenities and stores are close by, and more. You can test your commute, see if you like the local parks, and participate in San Antonio culture, all with plenty of time left to decide if this is the right home for you. 

The option of testing the city before you commit can be a good option for people who’ve never lived in Texas before, or who are interested in seeing how the culture and environment in San Antonio are different from other Texas cities. 

Of course, this option is only available if you’re choosing a Lease-Option contract, instead of a Lease-Purchase contract that locks you into buying the home. 

What To Look For When Searching For A Rent To Own Home In San Antonio

There are a lot of reasons to move to San Antonio. It’s a vibrant city with communities for people of all backgrounds, income levels, and goals. Every neighborhood has its own feeling and life to it, and there’s a lot of excitement to be had here. 

But even if you’re set on living in San Antonio there are still some things to consider when you’re looking for rent-to-own homes in San Antonio. 

The Difference Between Lease-Option And Lease-Purchase

When you’re considering a rent-to-own home in San Antonio it’s important to know the difference between these two types of contracts

A Lease-Option contract means that you have the option to buy the home at the end of your lease period. That’s good because it gives you the flexibility to move if your job relocates or you have other extenuating circumstances. 

However, it also means that you’ll lose the money you were putting toward your deposit if you do decide against purchasing the home. 

Lease-Purchase contracts require you to buy the home at the end of the lease period, so there’s a little less flexibility there. However, these contracts are more secure for the seller, so they often come with fewer fees and may be easier to get. 

Both options are valid, but you should consider your position, whether your job is likely to relocate, whether you want to live in San Antonio long term and any other extenuating circumstances when you decide which kind of contract you’re looking for. 

Rent To Own Maintenance Agreements

While most rent-to-own agreements will split maintenance costs between the renter and the landlord, not all rent-to-own agreements follow that trend. 

There are advantages to almost any maintenance agreement, but you should consider the pros and cons of each style before you commit to a lease with any one style of a maintenance agreement. 

Renter Pays For Everything

One option when you’re renting to own is that the renter pays for all of the maintenance and upgrades while they live there. 

This agreement might not sound like a great deal at first, but there are some advantages. 

For instance, if the price of your home is set before you make repairs and improvements, you can wind up getting a great deal on a home that’s worth more than you pay for it from the beginning

Renter and Owner Split

Splitting the maintenance and repairs to a home is the most common version of this arrangement, and usually works in everyone’s favor. The owner gets to sell a home without having to pay for all the necessary repairs, and the renter gets some say over what repairs are made and how and doesn’t have to pay 100% to repair problems that crop up during the lease term. 

Owner Pays Everything

This is the least common version of this agreement. While it has advantages, like not having to pay for repairs while you’re living there and having a more standard rental experience, it also has disadvantages, like not having a say in how the repairs on your future home are conducted. 

Typically, in this kind of agreement, the price of the home isn’t set until close to the purchase date, which can also mean that you’ll wind up paying more than you hoped if the owner decides to make a costly repair or upgrade when you’re living there. 

It’s a good idea to avoid this option if you can, just because having control over your future home is important. 

When Will The Home’s Purchase Price Be Set?

One more important consideration is when the home’s final selling price will be decided. Some rent-to-own agreements set the price right away, while others wait till the end of the original lease and base prices on the updated value of the home. 

As the buyer, the sooner the home’s price is finalized the better it’s likely to be for you. Prices are going up in Texas right now, which means that the price of your home is likely to increase during your lease, regardless of any repairs or upgrades you and the home’s current owner make. 

Add the value of repairs and upgrades and you can be looking at a significantly more expensive home than you were intending to buy at the beginning. 

The sooner you can get the price of the home set in writing, the better deal you’re likely to get. However, some flexibility in the case of major repairs or remodels can be a good idea too since you’re more likely to get the current owner to work with you if there’s a possibility of repairs raising the final price so they can recoup their costs in the end. 

Needing A Premier Real Estate Agency To Help You Find A Rent To Own Home In San Antonio?: Here’s How To Know You Found The Perfect Agency

Not sure how to find the right real estate agent for a rent-to-own home in San Antonio. We don’t blame you for being worried. Rent-to-own home deals are less common than other kinds of housing agreements, so realtors are less likely to have seen them before. 

The trick is that you need to find a real estate agent who understands this kind of agreement, is willing to negotiate on your behalf, and remembers the most important features of a home for you. 

One good way to tell if you have a good realtor is if the first few homes they show you are a relatively good match for your needs. If they dial into what you’re looking for that quickly, you’re probably in good hands. 

It’s also important that your realtor feels approachable, and that you feel like you can ask questions and help guide their decisions. 

If you want to see what it’s like to be in good hands and work with a realtor that really pays attention to what you’re looking for and makes sure they have a good match before making a recommendation, contact Teifke Real Estate today!

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