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Alabama Rent to Own

A rent-to-own, aka rental-purchase, is a legal documented transaction in which a tangible property such as motor vehicles, consumer electronics, real estate, home appliances, engagement rings and furniture in exchange for either monthly or weekly payment with the option of purchase at some point in the course of the agreement.

About our Alabama Rent to own form

Our Alabama rent to own form is a popular option amongst potential homebuyers. You can essentially compare it to a neighborhood “test drive.” Unlike traditional lease/rental agreement, a rent-to-own agreement allows the lessee to purchase the property lease at any point during the/rental agreement.

Basic details to include in an Alabama rent to own document

  • Landlord and tenant information includes the name and legal, physical addresses of the both parties
  • Security deposits, if any
  • Rent payment and rent/lease term
  • Purchase price and option to purchase price
  • Premise guidelines
  • Terms of the agreement

Why you should offer a rent to own option in Alabama

As a landlord in Alabama, you can provide your tenant with a rent-to-own option even if your ultimate goal is not to sell the property. You can use this option if you want the tenant to take good care of your property. This is because a tenant who chooses a rent to own option is more likely to take better care of the property.

How to write Alabama rent to own agreement

Rent to own document bears a close resemblance to a rental or lease agreement. Much of the information in a lease agreement is also included in rent to own form.

You’ll need to provide name and address for landlord and tenant as well as few information to help point out the property in question. In premises guidelines section, state what’s allowed and not allowed in the property same as you would do in a standard lease agreement. If the rent to own differs from the lease agreement, the tenant may need independent legal advice before signing the contract, and this should be noted in the rent to own agreement.

If there’s an existing lease agreement exists, you should mention this in the rent to own document and the date when the agreement was signed.

The premise purchase price and the option to purchase should also be listed in the rent to own form. You should also state how rent will be paid, amount and the amount applied to the purchase price.

Other information that should be included in Alabama rent to own letter include tenant responsibilities, utilities in the premises and the existence of amenities as well.

If the property was built before 1978, you should indicate this on the document and if possible attach a lead paint disclosure.

Free Alabama rent to own agreement

You can access our rent to own template for free. However, you’ll need to pay a small fee to download it on your computer in different file formats. You will then access to our full section of landlord forms.