Speaking to MPA two months ago, he said: “Rent to own is a landlord generating rent and creating incentives that may not be the right incentives for the client to eventually buy the property. (In addition), it doesn’t coach clients to buy the house, and it has a repurchase price that is really high for them.”
Real estate professionals also remain the agent of record when referring clients to Landis. “If the real estate agent sends a client to us and we end up buying a property for that client, the agent represents Landis on that acquisition and makes their full commission,” Berdugo said, adding that it was a “win-win situation” and one of the benefits of partnering with the National Association of Realtors (NAR).
According to US Census Bureau figures, there are between 43 million and 44 million people who are renter occupiers, while renter-occupied units made up 30.8% of the inventory in the second quarter this year.
For many Americans, homeownership is an unattainable dream, particularly now that home appreciation has reached a record high this year, with the median price of an existing home soaring to $356,700 in August – a 14.9% increase compared to the same period a year ago, according to NAR.
Other companies, including Home Partners of America, which Blackstone Group Inc. recently agreed to acquire for $6 billion, have become actively involved in rent-to-own strategies, suggesting there is growing interest in the industry for the adoption of similar schemes.