Our Top Tips for Renting to Own with Bestway
Rental to own (RTO) is a pricing model that lets potential buyers lease an item and pay monthly installments until they have paid off the cost of the item. This is different from leasing an item with no final payment, or leasing with a final payment that’s only a small percentage of the item’s original price. This article will explain what RTO is and what you need to know before renting to own. Read on to discover our top tips for renting to own with Bestway – and how we can help your business grow. Get rental discounts
What is Rent to Own?
Renting to own is a financial agreement that lets a person rent an item and make a set number of monthly payments until the item is fully paid for. The terms of a rent-to-own agreement can vary based on the needs of the person renting and the policies of the retailer renting to own the item. With a rent-to-own agreement, the person leasing the item pays a deposit amount and a certain monthly payment. The person leasing the item is responsible for paying for any repair costs due to normal wear and tear.
How Does a Rent-to-Own Program Work?
Renting to own an item means you will be making monthly payments toward the purchase price until the item is yours. You can make your payments online, by phone, or even by mail. The key to a successful rent-to-own program is a fair purchase price. That’s why the price to buy the item is typically higher than it would be if the customer purchased the item on a credit card. The price is also normally higher than it would be on a lease. You will also have to decide when the item can be returned. You may require the item to be returned at the end of the contract period, or you might allow the customer to keep the item if they pay any remaining balance. The contract period may be as short as one month or as long as a year. The contract should also include a penalty for the customer if they return the item before the end of the contract period.
Bestway RTO Program Requirements
The lease-to-own contract must be in writing, and both you and the customer must sign it. The contract should state the exact price and the number of payments. It should also include the date the final payment is due. The contract should also state whether the customer must make all the payments or only the payments that are currently due. You should keep a log of all payments made, including the dates the payments were made and the amount of each payment. For more information be sure to check with Bestway Rent To Own Customer Service.
Bestway RTO Costs and Fees
As the lessor, you will charge the customer an amount that is greater than the item’s purchase price. The amount you charge must either be listed in the contract or calculated as a percentage of the purchase price. You will also charge a one-time application fee, which may be a percentage of the purchase price or a specified dollar amount. You may also charge an annual percentage rate (APR) for the financing.
Pros and Cons of Rent to Own
Pros of renting to own include: You don’t have to find a new tenant if the current tenant stops paying the rent. Cons of renting to own include: – The customer might not make the final payment and might not return the item. – The item might be damaged or broken. – You might be required to repossess the item. – You might be sued for a breach of contract if the customer is unsatisfied with the results. – You might lose money if the item doesn’t appreciate in value. – You might be required to keep track of maintenance for the item. – You might not be able to resell the item when the contract ends.
Tips for Renting to Own with Bestway
Before you begin renting to own, you will want to make sure you have the necessary equipment and insurance to accommodate the extra foot traffic that often accompanies RTO. From signage to digital marketing, you’ll want to make sure that you have all your bases covered. – Be clear about your return policy: Most customers are worried about making the final payment on time, so they will make sure they have enough time to finish the payment. That’s why you should make it clear that the customer has a certain amount of time to return the item if they stop making payments. – Take pictures before you accept the item: It’s important to take pictures of the item before you accept it from the customer. That way, if the item is broken or damaged, you can take those pictures to show the customer what happened to the item. – Make adjustments to your contract: It’s a good idea to make a few adjustments to your contract. For example, you may want to charge a late fee when the customer misses a payment. You may also want to require the customer to pay a higher interest rate if they make a late payment.
Final Words: Is Rent to Own Right For You?
Before you rent to own an item, make sure it is something that you can resell at a later time. If you are not sure, you may want to rent the item with a traditional lease agreement to avoid the hassles that come with a RTO. If you are thinking about renting to own a piece of equipment, make sure you take into account the cost of repairs and maintenance. If you follow these tips, you should be able to navigate a successful RTO program.