pros/cons-rent-to-own contracts vs renting MH

[Chris Ashley]

Hi,

I recently purchased a MHP which came with 3 vacant trailers I own. The trailers are in decent shape and ready to rent. I was initially going to rent the trailers, however, I've been approached by several people wanting to rent-to-own. The terms I'd sell trailers for would be a similar monthly rent-to-own payment as what I would collect by just renting trailer-the difference being with rent to own they'd be invested in trailer, own it eventually at which time I would loss some monthly income and only collet lot rent. Long term I'd prefer to have stable tenants who own trailers with less turnover. rent to own would also take care of repairs and maintenance.

Example terms for rent to own 1983 Redman 14X70. purchase price of $21,000. Monthly payment of $625 ($350 toward trailer, $275 toward lot rent) for 60 months.

It would be great to hear others perspectives? What are the pros and cons? What am I missing?

Best regards,

Chris-