Rent to Own FAQ
Frequently Asked Questions
- Question: How much option consideration (down payment) will I need?
- Answer: That depends on how much you have and the property in question. We require enough down to make sure you’re committed, but it’s a low amount compared to what lenders may require if you apply for a traditional mortgage right now. If all you have is $1000 to put down, then you unfortunately aren’t the best fit for this program, but we may have other opportunities available or can connect you with others who can help.
- Question: Are there any commissions or fees?
- Answer: Nope.
- Question: What if I need to move and can’t purchase it?
- Answer: The contract will spell this out so that there aren’t any surprises. The option consideration you put down is non-refundable, but if you uphold the terms and conditions, we will return 25% of that amount to help with your transition and moving costs.
- Question: Don’t most people doing rent-to-own end up not purchasing the property?
- Answer: It’s true that many end up not purchasing the home, but that’s often because the investors don’t structure the deal properly due to lack of knowledge, greed (they make more money if you fail…), or some other factor. It can also be genuine life circumstances with the tenant/buyer, poor choices and not taking necessary action to repair credit, or that they weren’t screened properly to begin with and therefore weren’t the best fit for this program. This is why we require a larger option consideration (down payment), have you work with a mortgage broker, and charge rent at or above what your new mortgage payment will be.
- Question: What protections will I have that I won’t be taken advantage of?
- Answer: There are multiple ways we ensure your protection. It is important that you read and understand any document before you sign, so read them thoroughly, and do your due diligence inspecting the property so that you know what you’re moving into. Since you have the exclusive option to purchase (separate from the lease agreement), we can’t sell it out from under you and we can’t arbitrarily terminate the agreement. The only way we could terminate the agreement is if there is a clear violation of the lease on your end, which would end in eviction. Otherwise, we have no legal ability to revoke your option, and you are in control of when you execute it, so we don’t have a say in when you pull the trigger with the purchase. You are free to terminate at any time for any reason, in which case you would forfeit the option consideration you put down, but we cannot do the same to you. Those are the main areas you are protected. There are investors out there who will take advantage of you, so it’s imperative that you know how you’re protected before moving in.
- Question: What repairs will I be responsible for?
- Answer: You will be responsible for basic maintenance and repairs for anything $500 or less per incident since that is part of home ownership. Anything $500 or more per incident will be covered by us since you haven’t taken on the full risks and responsibilities of home ownership yet.
- Question: Can I make changes or updates to the home during the lease period?
- Answer: Since you will soon be owning it, we are supportive of you making updates to make it your own, but since you don’t own it, yet we just require that you run it past us for approval first.
- Question: Can we have pets?
- Answer: Yes, we allow pets. Details are spelled out in lease agreement.