Being a human, we are never happy with what we have. As a result, we keep on looking for better things from time to time. Sometimes we are in dire need of an item that we need only once whereas at another time we just need a change and want to replace our existing items.
Thinking varies from people to people so are their choices and decisions. Some people assume that renting is limited to property and automobiles only. Whereas, some are reluctant to get items on rent due to potential problems with a rental process like a limitation of choice, handling issues, strict policies, security etc. But beyond all the concerns and odds, every cloud has a silver lining.
Rent-to-Buy is a progressive concept introduced by RENTOLE that acts as an alternative to traditional sale and purchase agreements. It benefits both buyers and sellers in one way or another. At the onset, these agreements are like traditional rental agreements. However, with the passage of time, the renter gets the authority to purchase the item in the future.
Price to Rent Ratio
The price to rent ratio ensure the affordability of item in terms of buying vs. renting. It is measured on the basis of the actual price of the item. When the contract starts, the share of both buyer and renter is based on the actual price of the item. With every passing installment, the share of the owner decreases, and the share of the renter increases. When the end of the installment, the renter becomes the new owner of the item. The renter can choose any installment plan from 1 month to 20 years.
Let’s assume the item has 10 installments. Following is the infographic: