What a Home Buyer Should Know About Seller Rent Back Agreements

Are you a home buyer thinking about offering a rent-back agreement to a home seller in order to win a bidding war? I have outlined some of the considerations you should be aware of when you offer this to a home seller.

What are Rent Back Forms? 

We are currently in a seller's market. A few years back this form was not standard! We are seeing this as uncharted territory and want to go through this with you. The Rent Back form goes over rental amounts and timelines and it is whether you are requiring the seller to pay a monthly or weekly rental amount. Also if a damage deposit is required. This form is filled out you are entering a Landlord-tenant opportunity/laws and regulations. 

Example Circumstances:

 -You are renting back the property to the seller. If the fridge breaks 2 days after closing, it's on your dollar to fix it.

- If all the sudden the pipe breaks it's your dollar to fix it 

Responsibilities: 

-Collect rental payments 

-Fix anything that is broken 

-Dictate whether or not the tenant can have a pet 

-Dictate what modifications they are able to make to the property 

-Dictate what utilities they are responsible for 

My Tips: 

-Please complete a Move-In Property Condition Report because if you can't prove damage, you are not able to keep their damage deposit from the tenant. 

Please reach out with questions! I am here to help - I have linked a quick recourse HERE

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