Are you currently in the middle of a rent to own property deal? If so, you know that one of your options may be to walk away from the property when your lease ends. As you can imagine, this is something that a lot of people do. And when it comes down to it, the ability to walk away is one of the biggest benefits of getting involved with a rent to own property. But of course, you need to make sure that walking away is the right choice to make. In many cases, you may think that leaving the property without purchasing is the thing to do, but a bit more detective work may show you that you are wrong.
First and foremost, before you sign a rent to own property contract you need to make sure that you will have the chance to walk away without buying if you so desire. The biggest mistake that you could make with a rent to own property would be to not have this out clause in your contract. If you do not have the right to leave after the lease is up, you are not really taking full advantage of what a rent to own property has to offer.
The main reason for leaving a rent to own property instead of buying is if you are not happy about what the home is offering. But before you jump the gun, make sure that you take two things into consideration. First off, you need to make sure that you are comfortable walking away from the deal. In other words, if you walk away you may not be able to find something better elsewhere. In turn, you will find yourself wondering why you left your rent to own property. Additionally, you must also make sure that you have somewhere to go. Moving from one rent to own property to the next is never a good idea. If you are not going to buy the home that you are in, you should simply decide to either rent or own. This will help you to make the most out of your money as well as your real estate deals.
If it is in your contract, you have every right to walk away from a rent to own property. Just make sure that you are comfortable doing so before you make a final decision to leave the property.
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The first thing you should know is that properties change hands fast in Bangkok. I believe the same applies for all major cities where there is a considerable expat population. So, when you have finally found that one property you like, try to stop yourself from wanting to see more "just in case there is something else out there" because from my experience, people always come back to the first one they like. Those who are decisive move in weeks after, excited while those who hesitate too long end up settling for second best and sometimes, may even cost them more in rent.
Call your agent immediately and tell them about your decision. You then need to decide what extras you need in the property and the price you are happy to pay. Then the agent can go off and negotiate on your behalf. Once the rental price and extra items are settled, you need to arrange for an initial deposit, or what we call a "booking fee" to secure the property. Putting down a booking fee guarantees you the property, so you can go off and start organising the move. Without it, there is always that chance that someone else might come along and take it from you. Basically, whoever puts down the money first, gets the property! To prevent that from happening, the initial deposit required here is usually equivalent to one month's rent with the remaining to be paid at the signing of the contract. This can be done once the contract is approved on both ends.
If you are renting an apartment, which is owned by a single entity or business, chances are the contracts are not going to vary very much since these are very standard, thus you can quite confidently put down the deposit and then have the contract sent to you later. Most apartments are flexible on simple clause changes (within reason) but if you require a diplomatic clause included, it's best you settle that before you put down the booking fee.
The standard security deposit in Thailand is two months rent, plus a month's rent in advance. Therefore, you pay three months upfront when you move into a new premise. You are entitled to have that security deposit returned to you at the end of your lease term, provided the property is handed back to the owner in good condition, taking into account normal wear and tear. Should you break lease before the end term of your contract, the landlord can rightfully forfeit your despoit unless a diplomatic clause is applicable. However, a diplomatic clause is only applicable in cases of overseas job transfer, termination of work or political crisis, and requires company supported documents as proof. It does not cover situations when you've suddenly decided you need a bigger place and wish to move.
Both Kim Lee & Maddy Barber are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Kim Lee has sinced written about articles on various topics from Bathroom Remodeling Ideas, Sell Home and Real Estate. Kim Lee writes for . Kim Lee's top article generates over 40500 views. to your Favourites.
Maddy Barber has sinced written about articles on various topics from Vacation, Real Estate and Travel and Leisure. Maddy Barber is the leading sales agent at Bangkok Finder - a leading , as well as Hua Hin Finder, a. Maddy Barber's top article generates over 110000 views. to your Favourites.