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Colorado Rent to Own

A Colorado rent to own form is a legally binding contract between a landlord and a tenant. Rent to own gives potential new homeowners a chance to try a property before they buy it. It’s a neighbourhood “test drive.

What can be negotiated in a rent to own agreement?

Some of the biggest decisions that need to be negotiated between the landlord and tenant are:

  • Price of the property
  • Option fee
  • Length of lease
  • Rent credit

Who benefits from a Colorado rent to own property?

Under the right circumstances, both the landlord and the tenant mutually benefit significantly from a rent to own contract. However, landlords who reap the best benefits from this agreement are those:

  • Having trouble selling their property
  • Need to own their property for a given period before they can sell
  • Already purchased a new home and want to get rid of the burden of carrying two mortgages

Because rent credits and option to purchase fee are non-refundable, if the tenant doesn’t buy the property after the lease period ends, you will financially benefit from the agreement. Additionally, a tenant who signs a rent to own agreement in Colorado will tend to take better care of the property since it will be their home shortly.

How to write a Colorado rent to own contract

It’s simple and easy to write a Colorado rent to own agreement using our customised printable rent to own forms. The free rent to own form will take you through all information you may wish to include in a lease to own contract agreement.

The first step in writing a rent to own contract would be to write down the name and address of the main parties involved in this contract (landlord and tenant). You will also need to indicate the type of property being leased/rented, and it’s addressed.

If possible include some basic premise guidelines to help the new tenant understand what allowed and not allowed in the premise. If pets are allowed and smoking it’s not allowed around the premise, kindly indicate that so that the tenant doesn’t violate the rent to own agreement in the future without their knowledge.

Just like in a standard lease/rental agreement, a rent to own agreement also includes the term of the agreement section. In this section, state when the lease agreement starts and when the time it will expire. Also, include information regarding lease termination and indicate if the rent to own agreement is part of an existing lease agreement. If the tenant requires legal advice before the execution of the rent to own contract, indicate that in the document.

The only distinguishing factor in a rent to own agreement from a rental agreement is that a rent to own property agreement includes a premise purchase price and option to purchase cost. Option to purchase is non-refundable even when the tenant opts not to purchase the premise.

Free rent to own contract template

While rent to own contracts will cost you hundreds if not thousands of dollars if you visit a lawyer, our printable Colorado rent to own form is available for free. You can fill the form and get a preview of what the final document. However, we only charge a small fee to download the document on your computer in different file formats. You will get a professional looking rent to own agreement document similar or much better than what you’d get from a lawyer.