Is Rent To Own legal in New Jersey

[Gerald Boone]

Is Rent to Own Legal In New Jersey? and will I be able to Rent to Own a property that currently has a mortgage? 25 years remaining.

[Christopher Wraback]

Yes! Feel free to reach out to me, I specialize in lease options in NJ.

If you're the landlord, you can easily do a lease option on your property. You want to make sure the tenant is qualified and the rent exceeds all your monthly expenses. I would recommend a lease term for 3 years, with the option to purchase. And when they purchase they would have to get a new mortgage.

If you're the tenant, it's going to be a little harder. You will have to find a motivated landlord or a property that has been on the market for a while and the sellers are motivated. You would have to do your due diligence to determine the monthly payment of the seller, and offer rent at around $200/mo over that. Then negotiate a sales price for the end of the term that ACCOUNTS FOR APPRECIATION. Many people who try to do lease options are unsuccessful because they offer the price of the property today, and sellers know their home will not be worth that when the renter is ready to buy. I recommend you work with a qualified attorney throughout the entire transaction as well.

Any other questions feel free to reach out to me and best of luck!