lineFrequently asked questionsline

Why Consider Selling my Home as Rent-to-Own?


Rent-to-Own buyers are often willing to pay full market value (or even slightly higher) due to their unique circumstances. As a landlord, you will not only sell the home, but earn rental income while the contract is in force and require the tenant to do maintenance and make all repairs. You will not pay any fees or commissions to sell the home.

What Type of Agreement Do I Need to Sign?


You will need to sign the Lease Option Open Agency Memo when you decide to work with us. This agreement allows us to legally market and advertise your home, show it to prospective tenant-buyers and present offers on behalf of our clients. This agreement is non-exclusive, meaning that if you lease or sell the property to someone you found on your own, there are no problems and you will not owe any fees or penalties. We are paid only when we find a qualified tenant-buyer that you approve of rents-to-own.

Does the Buyer Make a Down Payment?


The down payment is actually considered the lease option fee under the Rent-to-Own agreement and will vary per property and asking price. We have found that the larger the lease option fee, the more stable the tenant-buyer is for you.

The lease option fee is our remuneration. A higher fee benefits us both.

Who is Responsible for Upkeep and Maintenance on the Home?


The tenant-buyer takes responsibility for all maintenance and repairs on the home. After all, it is going to be their home!

How do Buyers get Financing When Exercising the Option?


Tenant buyers apply for a loan at any conventional lender such as a bank or credit union. The Rent-to-Own contract gives them time to earn, save and secure financing to buy the home.

Will I be Able to Charge More for Rent as a Rent-to-Own?


Weekly rent is commonly higher for Rent-to-Own arrangements than rent paid for a traditional rental property.

How Much of the Rental Payment is Credited Toward the Purchase Price?


We receive calls every day from families who often believe the entire rent payment will be 100% credited towards the purchase price. It is rare where 100% of the rent goes towards the purchase price. Typically, 10-15% of the rental payment is credited toward the purchase price.
Our contracts spell out all rent credit agreements so that there is no room for misunderstanding later.

What is Our Involvement in Collecting Rent?


We are not involved in collecting rent payments. We help setup and execute the direct debit authorization to collect the lease payment for the first week at the time the lease is executed. Our involvement in lease payments ends at that point.

What Would Happen if the Buyer Stopped Paying Rent?


Generally, this is rare. Rent-to-Own buyers have no incentive to stop paying rent. If they fail to pay scheduled rent payments, they will lose 1-2% of the purchase price, the lease option fee (down payment) that was paid, all rent credits and they will no longer have a place to call home.

Rent-to-Own buyers stand to lose much more than just a rental tenant.

How Do I Know the Tenant-Buyer Qualifies to Purchase my Home?


All of our tenant-buyers must complete a comprehensive pre-qualification process with a mortgage professional. The process is designed to determine whether the buyer will qualify to purchase your home by the expiration date of their contract. Pre-qualification is based on their credit history and rating, income, debt-to-income ratio, reserves, payment history and employment history.

What Happens if the Tenant Option Period Expires Before They Qualify for a Mortgage?


If the option period expires before the buyer qualifies for a mortgage, the seller is no longer obligated to sell. Our contracts allow for an optional clause to extend the Rent-to-Own period, if needed.

That is importance of the buyers consulting with a mortgage specialist before they enter into a contract with you. Tenant-buyers need to clearly understand what is needed to qualify for a mortgage and have a clear timeline.

Will Your Contracts Protect My Interest in the Property?


Yes. All agreements must be in writing, nothing verbal. If it is not in the contract, then it simply does not count. All of our Rent-to-Own transactions are closed with a solicitor.

What is Your Marketing Plan for My Property?


Professional marketing is conducted on more than 20 websites. We will also email blast your property to our growing database of prospective tenant-buyers. We have far more tenant-buyers than we have homes!

What are the Benefits of Selling Through a Lease Option?

  • Great price for your home.
  • No fees or commissions. You pay nothing for our services. Our fee is collected upfront from the tenant-buyer.
  • Debt Relief! How much longer can you continue making mortgage payments on a second house or a vacant house? Start collecting rent instead of bleeding out cash on your vacant property.
  • If you find a tenant or a buyer before we do, you will owe us nothing! ! You are under no obligation. So go ahead and keep advertising the house yourself.
  • We already have a list of pre-qualified tenant-buyers ready to purchase their own home. Our buyers have good jobs and good income.

Tenant-Buyers:
  • Have an ownership mentality and take better care of the property better than rent-only tenants.
  • Typically pay on time.
  • Are required to take care of all repairs. They won’t call you to fix a clogged toilet late at night.
  • Are pre-screened before they even see any houses and are not accepted into our program if they cannot meet the qualifications.
  • Work closely with our Mortgage Broker

 

TOP MARKET RENT / TOP SELLING PRICE /
REPAIRS TAKEN CARE OF BY TENANT-BUYER

We believe that selling the property through a lease option contract is a great solution both for the sellers and the buyers. In fact, it may end up being the best financial decision you ever make.

Best Wishes
Martin and Joanna Sztandera

 


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