Frequently Asked Questions (FAQ)

Can I make modifications to the property?

Rent: All modifications are subject to pre-approval. (additional deposit may be required)
Rent To Own: All modifications are subject to pre-approval. (additional deposit may be required)
Owner Financing: N/A – We merely act like a bank in this situation, you can do as you wish.

What is your pet policy?

Rent: We charge a small non-refundable pet deposit, as well as a modest monthly ‘pet rent’.
Rent To Own: We charge a small non-refundable pet deposit, as well as a modest monthly ‘pet rent’.
Owner Financing: N/A – We merely act like a bank in this situation, you can do as you wish.

Do I need renters insurance?

Rent: Yes, renters insurance is required. We are place secondarily on the insurance, not as a beneficiary – instead to be notified immediately of cancellations or lapses.
Rent To Own: Yes, renters insurance is required. We are place secondarily on the insurance, not as a beneficiary – instead to be notified immediately of cancellations or lapses.
Owner Financing: N/A – We merely act like a bank in this situation, you can do as you wish.

How much does renters insurance typically cost?

Between $10 – $40 / month. When bundled with other insurances (car, life, etc) it can actually save you money! Plus it’s great if anything should ever accidentally happen to any of your belongings!

Who takes care of landscaping?

Rent: We do. We send in landscapers as a part of your rental price to take care of the property, so that you don’t have to!
Rent To Own: We do. We send in landscapers as a part of your rental price to take care of the property, so that you don’t have to!
Owner Financing: N/A – We merely act like a bank in this situation, you can do as you wish.

Who pays which utilities?

Rent: You do. You are responsible for water, sewer, gas, electric, and trash services.
Rent To Own: You do. You are responsible for water, sewer, gas, electric, and trash services.
Owner Financing: N/A – We merely act like a bank in this situation, you can do as you wish.

If we get a property with a pool, who maintains it?

Rent: We do, if your house includes a pool or outdoor hottub/jacuzzi – service is included in the rent.
Rent To Own: We do, if your house includes a pool or outdoor hottub/jacuzzi – service is included in the rent.
Owner Financing: N/A – We merely act like a bank in this situation, you can do as you wish.

Do you do disability retrofitting?

Rent: We can, but it is on a case by case basis.
Rent To Own: We can, but it is on a case by case basis.
Owner Financing: We can, but it is on a case by case basis.

Can I break my lease? How?

Rent: You will need to pay out the remainder of your lease, or 3 months of your lease – whichever is less.
Rent To Own: N/A
Owner Financing: N/A.

How does a Rent to Own work?

-We have options to the sale price and rent we will charge for the house. Both amounts are subject to negotiation, just as a regular sale would be. But sellers and buyers need to remember that once they sign an agreement, the sale price of the house is locked in until the end of their rental term, between one and three years. Even if other housing prices rise or fall during that time, the original agreed-upon price is final.

-Tenant Buyers also pay an option fee and rent. The option fee is a set amount that the tenant buyer pays the seller. If the tenant buyer decides to exercise their option then they can purchase the home for the agreed upon purchase price. If the tenant buyer doesn’t buy the home, the option fee is non-refundable. Rent premiums are an amount slightly above the typical rent, with a portion of that money going toward the purchase price each month.

Example of a rent to own:

The house is worth $200,000, and typical rent would be $2,000 a month. Someone who’s renting to own might pay $2,200 a month in rent and then receive a $200 rent credit each month. Add the option fee, in this case $6,000. On a three-year lease, the renter would earn $7,200 in rent credits. Therefore the purchase price would now be $200,000, but you have accumulated a $7,200 down payment.

What are the advantages and disadvantages of a rent to own?

This is a valuable alternative for buyers who otherwise wouldn’t have the credit score or money saved to acquire their own home.

Let’s look at some advantages and disadvantages for buyers:

Buyers have time to build income and repair their credit history as they rent the house.

Your payments every month are building toward an end goal of home ownership vs. nothing to show after renting
Buyers still have to pay the upfront option fee. It’s usually a percentage of the agreed-upon selling price of the home and is often thousands of dollars. Although this money will go to the down payment should the renter decide to buy the house, it can still be difficult to accumulate that much money before renting.

At the end of the rental period, the buyer still may not be able to buy the home for the same reasons they couldn’t buy at the start of the lease: bad credit, insufficient down payment, not enough income.

Who does the repairs on the house?

The new tenant buyer does all the repairs. Whether it means climbing on a ladder to unclog the gutters or having to pay for a new washing machine when the original washer breaks, the new buyer has to take care of their own house.

Why should we rent to own vs. rent?

That way your money is going toward something every month vs. a rental you have nothing to show for it at the end of it. This also should be a decision that you are ready to be a home owner and achieve the American dream vs. the renter.

Who takes care of the taxes and insurance?

The taxes will be paid by the seller and the tenant buyer will be required to carry a basic renters insurance policy until they buy.

Do you offer owner financing?

Yes, we will finance you into the home and it will be in your name with the right amount of money down. We use guidelines that are flexible vs. banks that can’t make decision are their own. We understand thast things come up in life and credit, income verification, etc. may not be perfect!

What is wraparound financing aka owner financing?

Wraparound financing is an alternative often used where the seller has a mortgage on the home and the buyer has sufficient income but, for a variety of reasons, is unable to obtain a mortgage. The buyer makes a down payment at the time of the sale and signs a promissory note to the seller for the remainder of the purchase price, plus interest. The buyer then makes monthly payments to the seller, who uses that money to pay off the existing mortgage. This type of financing saves each side closing costs and this is a secure way to do business by utilizing a 3rd party long term escrow company that handles all payments, taxes, and insurance.

What are the benefits of wraparound financing aka owner financing?

You own the house in your name and every month you are taking the benefits of home ownership by paying it down and having a tax deduction. The down payment that is required is higher than that required for a rent to own.

Who is responsible for maintenance in a wraparound financing aka owner financing?

The owner is responsible for repairs to the property and is also responsible to pay property taxes and homeowner’s insurance.

Are there any other options we could utilize?

Under a land installment contract, the seller agrees to transfer the title to a home and the property it sits on only after the buyer has met certain conditions specified in the contract, typically the payment of the purchase price plus interest. This type of agreement is commonly used where the buyer is capable of making only a small down payment and smaller monthly payments. In this situation, there is no mortgage, or the existing mortgage is being paid by the seller, who must pay it off before transferring title to the buyer.

Who is responsible for maintenance in a land installment contract?

As with rent-to-own, the tenant buyer is responsible for repairs to the property and is also responsible to pay property taxes and homeowner’s insurance.