Here at Tenerife Property Group we often get asked if we have any properties available for rent to buy in Tenerife.
The idea of rent to buy is a good one in principle, but when you start drilling down and getting more information, the idea remains a good one but it might not be exactly what you think.
Many people want to make Tenerife their new permanent home, but how do you know where to live and what the area, let alone the property, will be like.
Generally speaking a lot of people think that rent to buy means that they can rent the property for a couple of years to make sure that they like living there and then if all goes to plan they’ll agree a deal to buy it.
It’s not as simple as that though. Everything is subject to negotiation, so a price normally needs to be agreed now for the future…normally something like 3 to 5 years in the future, this can be a stumbling block for some people.
Next, a deposit needs to be paid. The deposit to be paid is once again agreed upon during negotiations and could be anywhere up to 10% of the agreed sales price. This deposit is normally non-refundable as well, so this could be another possible stumbling block.
Clearly as a rent to buy option, you need to pay rent. The rent that is charged is very often higher than the rent you would be charged on a normal rental contract for the same sort of property, but again…subject to what is negotiated at the time, these monthly payments can be taken off the price of the property once you decide to buy it at the end of the agreed time period. If you choose not to buy, you will have lost your aforementioned deposit and your monthly rental payments.
As I said before, it is a good idea and not too dissimilar to renting in the normal way, but you really need to know what the details are before you enter into negotiations on a rent to buy in Tenerife, because if you don’t like it and don’t buy at the end, you are very likely to loose your deposit.