Rent-to-Own Properties in Panama

In recent years, the real estate market in Panama has matured considerably, there are several projects under development both in Panama City and in the interior provinces of the country, this has generated high competition and commercial challenges among existing developers, in addition to other new ones entering the sector.

And this can certainly be noticed in the real estate fairs of recent years, since there is a great variety of new projects upcoming, where the developers do not focus only on offering a house or an apartment, their commercial efforts also emphasize the lifestyle of the potential buyer, providing projects in strategic locations, and with more amenities focused on coworking spaces, spa, lounge, among other benefits.

This generates greater benefits on the buyer’s perspective since, as we mentioned before, the pandemic situation in 2020, combined with the current real estate environment, creates a market suitable for buyers, where they have many options to choose from and more flexibilities.

One of the alternatives that was seen to arrive a few years ago, and today it is more popular, is the rental of new apartments with the option to buy (Rent-to-Own properties).

What is a Rent-to-Own property?

In Panama, rent to own is a rental contract, for a specified time, where the tenant has the option to buy the property during the detailed period, and sometimes, the rental payments given are accepted as part of the initial payment.

When it is the case that the rental payments are considered as an initial, it is common that a maximum limit is reflected in the contract (usually 2 years of rent). More and more real estate developers offer this alternative to attract potential buyers.

Who does rent-to-own work for?

Generally, this modality is used for those people or families who want to move to an apartment or a new house in the short term, either with the interest of buying or renting, but who do not have a sufficient amount for initial payment at present.

It is worth mentioning that people who intend to buy at the end of the rental contract must ensure that they will be able to pay the sale price of the property, or, as often done, securing a mortgage loan.

Benefits and drawbacks of rent-to-own

This type of contract provides benefits for both the owner or developer, as well as the interested person.

In the case of the owner (lessor), it is an alternative that allows him in the best of cases to sell his property and, in case of not selling, it has allowed him to obtain a return on his investment thanks to the rental fees received.

In the case of the tenant, it allows him, at that particular time, to move and live in the property in the form of a rental, while investing in the possible purchase of it and looking for mortgage financing during the established period.

It should be noted that renting with the option to buy is one of the most attractive alternatives currently offered in the real estate market in Panama, since it opens the doors to a new segment of people and families interested in acquiring real estate.

If you are looking for an apartment or a house in Panama, get in touch with us! At all times, we have a wide variety of apartments and houses available at attractive prices.