Frequently Asked Questions
Frequently Asked Questions by Buyers
Frequently Asked Questions by Sellers
Frequently Asked Questions by Specialists
General
What is the difference between Rent To Own, Lease Option, Lease Purchase, Rent to
Buy, Owner Financing, and Land Contract?
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The difference is in the small details within the contracts. Rent To Own, Lease
Option, Lease Purchase and Rent to Buy all refer to what is essentially the same
transaction, the Rent To Own. A Rent To Own agreement between a Buyer and a Seller
is a contract that allows a potential Buyer to rent a home and have an option to
purchase the home from the owner at the end of a set lease term. The main components
of a Rent To Own transaction are the term of lease, purchase price, down payment
required, and rent credit.
Owner Financing and Land Contract agreements are typically characteristic of the
Seller who is financing all or part of the purchase price for the buyer. Instead
of receiving cash upfront, the Seller will act as the lender and receives monthly
rent payments with the remaining payment due (the balloon payment) at the end of
the agreement. Again, these transactions are very similar to a Rent To Own.
iRentToOwn.com is the first website to consolidate all of these distinctions and
provide the ability to transform houses for rent by owner into successful Rent To
Own contracts. In each of these six different scenarios, iRentToOwn.com suggests
that you seek professional assistance to ensure that a mutually agreed upon legally
binding document is signed by both parties.
iRentToOwn.com has created the largest marketplace of Rent To Own real estate in
the country. We provide Sellers with a means to advertise their Rent To Own homes
to a large audience of nationwide Buyers. Not until now has a single website combined
simplicity and transaction flexibility with such a remarkable volume of both Buyers
and Sellers of Rent To Owns. In addition, we put Buyers and Sellers in contact with
Specialists that provide the additional services most frequently involved with successful
Rent To Own transactions. Our sole focus at iRentToOwn.com is to provide you with
expert assistance in advertising or finding your home, while providing resources
which will help make your Rent To Own experience a success. Users have the opportunity
to fulfill the dream of buying a home using the largest Rent To Own resource in
America.
Why do Buyers choose to Rent To Own versus other methods of purchasing a home?
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Please see our Buyer page on Benefits of a Rent To Own.
The Sellers of Rent To Own real estate generally include homeowners, real estate
agents/brokers looking to increase exposure for a home they are representing, property
managers, assigned real estate investors that want to earn a fixed return, and Rent
To Own firms that provide Buyer assistance. You must be an owner or a legal representative
of an owner to advertise a home on iRentToOwn.com.
Anyone! To put this answer in perspective, we have Rent To Own homes advertised
on iRentToOwn.com that range in asking price from under $100,000 to over $2,000,000!
How many Buyers and Sellers of Rent To Own homes are there?
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With the recent credit crunch that has taken place in the United State economy,
Rent To Own transactions have gained a great deal of popularity. However, Buyers
and Sellers have been doing various structures of Rent To Own transactions (Rent
To Own, lease option, lease purchase, rent to buy, owner financing, and land contract)
for decades. For the first time in history, the spotlight is on Rent To Own transactions
and the number of Buyers and Sellers will continue to grow rapidly as consumers
become more aware of the Benefits of a Rent To Own.
No. It has been existent for decades in the various formats we just mentioned: Rent
To Own, lease option, lease purchase, rent to buy, owner financing, and land contract.
Please provide the details of a sample Rent To Own transaction.
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Say for example, you’re interested in a Rent To Own that the Seller is advertising
on iRentToOwn.com for $100,000. They’re asking for a 5% down payment of $5,000,
asking for monthly rent of $1,000 and offering monthly rent credit of $100. Additionally,
the Seller’s terms call for a two year Rent To Own agreement. So as the Buyer, you
pay your $5,000 down payment at lease signing and make all of your monthly payments
on time. At the end of your 24-Month agreement, you are entitled to purchase the
home at the fixed asking price of $100,000 minus what you accumulated in equity.
The equity in this example is the $5,000 down payment and $2,400 earned in rent
credit (24 months x $100 per month rent credit = $2,400). In this example, at the
end of your lease, your remaining balance of the Rent To Own home would be $92,600
should you wish to exercise the purchase option. It is the Buyer's decision to (1)
purchase the home at the completion of 24 months or (2) walk away and not pay any
additional money to the Seller.
An “option consideration” is generally another name for a down payment.
A “rent credit” is the portion of the monthly rent that is credited towards the
final payment due at the end of the lease on a Rent To Own home.
There should be two portions of a Rent To Own agreement. The first part is a standard
Lease that spells out the monthly rent payment, and other standard lease terms.
The second part is the Purchase Option, which binds the Seller to sell the property
to the Buyer at the agreed upon price provided the Buyer meets the agreed upon conditions
(in most cases the only condition is obtaining a mortgage). The Seller must sell
if the Buyer decides they want to make a purchase. However, one of the benefits
of a Rent To Own transaction, is that the Buyer is not forced to make the purchase
if they decide not to. This is the most common way to form a Rent To Own agreement.
Who does the maintenance and repairs on the Rent To Own, the Seller or Buyer?
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This is a negotiation point prior to signing the Rent To Own agreement or contract
and it is determined by both the Buyer and Seller.
Who pays the taxes and any insurance on the Rent To Own?
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Taxes and insurance are normally paid by the Seller of a Rent To Own.
Are Rent To Own transactions only worthwhile during a slow real estate market?
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Historical belief was that Rent To Own transactions were only done during a slow
market. In fact, nothing could be further from the truth! Rent To Own transactions
are becoming more popular in booming and busting United States real estate markets
on a daily basis. Consumers are beginning to educate themselves on all of the many
Benefits of a Rent To Own. We at iRentToOwn.com believe that there is always going
to be a need for the Rent To Own transaction, especially given the incredible amount
of benefits to both Buyers AND Sellers!
Is iRentToOwn.com just another Real Estate listing site?
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Definitely not. First off, iRentToOwn.com is not a listing site, it is an advertising
site. iRentToOwn.com is the first true Rent To Own website that is designed solely
as a marketplace for Rent To Own Buyers and advertising Sellers. Never before has
such a user-friendly website been created to service the Rent To Own market. We
are just getting started and are growing exponentially. We appreciate having you
as a customer and will continue to provide the largest Rent To Own marketplace in
the United States.
Simply follow this
Banner Link for a full display of the banner options we provide our customers;
thank you in advance for taking the time to link to our website! There are many
discounts and account upgrade opportunities for those that do link to our website.
I want to advertise my business on iRentToOwn.com, how do I do that?
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Please refer to the Specialist section below.
Just visit our Contact Us form and complete it; we pride ourselves on being highly
responsive to all queries.
I'm on your email mailing list and I do not want to be contacted anymore. How do
I remove my email from distribution and stop receiving messages?
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Buyers
If I'm a Buyer, how much does your website cost to use?
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Nothing! Our website is completely free of charge to all potential Buyers of a Rent
To Own. Please
Sign Up today!
What type of potential Buyers choose the Rent To Own method?
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Potential Buyers have historically included the following:
- People that are unsure about where they want to live but want to build equity
- People that see a great opportunity on a home that is not for sale
- People that are going through divorce and may be relocating
- People with impaired credit
- People who are tired of renting and want to take positive steps towards home ownership
- Real estate investors
How can I ensure that my credit improves enough to obtain a mortgage by the time
my Rent To Own agreement concludes?
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This depends on your particular situation. Many Buyers simply need to establish
credit in the first place. Some Buyers may have judgments, collections, bankruptcies
or foreclosures in their credit background; these will take more time to overcome.
iRentToOwn.com recommends you that seek professional assistance, in this case from
a mortgage provider, regarding the steps to take to improve your credit. A professional
and experienced mortgage provider should be able to tell you what you need to do
to be able to qualify for a loan. Many Buyers that have credit blemishes also join
credit repair programs. Most importantly, as a potential homebuyer through Rent
To Own or some other method, you have to take the responsibility of improving your
credit and paying down outstanding debts to eventually begin to save money.
Some Sellers will ask for their exact mortgage payment every month from you in the
form of rent and others will simply choose the market rate for their Rent To Own.
Some Sellers realize all of the potential for Buyers to benefit from a fixed purchase
price (in growing real estate markets) and will take that into account when creating
the figure.
What professional assistance should I seek while trying to pursue a Rent To Own;
do I need a real estate agent or an attorney?
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The traditional Rent To Own transaction does not require anyone other than Buyer
and Seller to complete a transaction, however, the iRentToOwn.com team highly recommends
that both the Seller and Buyer both attain the services of a real estate attorney
to protect each participant’s interests. There are certain real estate attorneys
and even real estate agents that specialize in these types of transactions and have
extensive experience in reviewing Rent To Own agreements and legal documents to
facilitate deals of such magnitude. Sellers providing Rent To Own Owner Assistance
may want to seek other professionals on behalf of the potential Buyer.
What happens if I sign an agreement for a Rent To Own house and I change my mind?
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This is one of the many benefits of pursuing a Rent To Own home. As a potential
Buyer, you are not obligated to purchase the home outright at the end of the lease
term. Please remember that down payments are generally non-refundable.
What if I am a potential Buyer with less than ideal credit?
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Fortunately for potential Buyers, Rent To Own is conveniently designed to take place
over a longer period of time than a standard home purchase. This time can be utilized
to enable the credit improvement process.
Do I get my down payment returned to me if I do not take the purchase option at
the end of the Rent To Own Agreement?
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In most cases the answer is “No.” The terms of the contract between the Seller and
Buyer will differ in every Rent To Own transaction, but the majority of Seller’s
will request a non-refundable down payment at the onset of the agreement. Please
take this into consideration when looking for a home.
Do I get my rent credit paid out to me if I do not take the purchase option at the
end of the Rent To Own Agreement?
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In most cases the answer is “No.” The rent credit does not represent actual cash,
but rather it is a form of discount that is provided to you, the Buyer, for agreeing
to purchase the home at the end of the Rent To Own Agreement.
The number one risk for a Potential Buyer is the potential failure to abide by the
Rent To Own contract put into place. In most cases, if you as a Buyer break the
contract in any way, the Seller is no longer obligated to sell you the Rent To Own.
In these cases, as unfortunate as they may be, the Buyer will almost always lose
all money provided as a down payment and forego any rent credit earned. Even if
you as a Buyer abide by all of the terms and conditions of the lease, there is still
a chance that you won’t be approved or can’t quality for a mortgage at the end of
the lease. This can be for many reasons such as poor credit or lack of documentable
income. Buyers must be aware that they should choose a lease length that meets their
own time horizon for improving their credit if it needs to be improved. Another
trap that Buyers fall into is that they don’t fully read and understand the legal
language outlined in their Rent To Own agreement. In all of these scenarios, a potential
Buyer would have their Rent To Own dream turned into a nightmare. You must educate
yourself by understanding your credit and how to improve it, determine your financial
ability and do not over-extend yourself, understand what is required to be approved
for a mortgage, understand your legal documentation or hire a lawyer to help you
understand it, and most importantly of all, treat the Rent To Own transaction with
the same importance that you would a home purchase. If you do all of these things,
you stand a better chance of completing a successful Rent To Own purchase.
You should not Rent To Own if you don’t feel that the length of a potential lease
term will give you enough time to build your credit to the point where you can obtain
mortgage or other financing to purchase the home. You should also not Rent To Own
if you are rushing into the process. We at iRentToOwn.com recommend you pursue a
Rent To Own agreement in the same manner you would if purchasing a Rent To Own.
You should also avoid over extending yourself and avoid making decisions based upon
future earnings.
Sellers
Why do Sellers choose Rent To Own versus other methods of purchasing a home?
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How long does my Rent To Own advertisement remain on your website?
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Your Rent To Own advertisement will remain on our site for an entire year from the
date the advertisement was purchased, or until the Rent To Own is no longer on the
market, whichever comes first. One of the many benefits of advertising on iRentToOwn.com
is that you can advertise your home even while you currently have tenants in the
home in anticipation of their lease end. This helps reduce the likelihood of down
time between tenants.
We have thousands of Buyers representing all 50 United States.
Do you break down states into the large metropolitan areas within each state?
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We do not currently narrow down markets into cities and states. This functionality
will be coming soon to our website as we continue to grow our Seller advertisements.
Yes,
iRentToOwn.com provides Sellers that want to
advertise more than one home with a discount on their purchase.
iRentToOwn.com encourages users to advertise more homes to
gain the necessary exposure from the largest Rent To Own marketplace in the United
States.
Do I get a discount when I advertise multiple homes?
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Yes! Please
Click Here
to see an overview of the pricing to advertise.
Additional discounts are based upon referrals and links to our website. Please
Click Here for more information.
As a Seller, you will receive your down payment at the Rent To Own contract signing.
You’ll also receive monthly rent payments from the potential Buyer. At the end of
the Rent To Own contract, you’ll receive the remaining balance of the purchase price,
less the down payment and rent credits earned.
Sellers face all of the standard risks when renting their Rent To Own home to a
tenant: wear and tear, potential missed payments, etc. However, the Buyer would
presumably take better care of the home because it will one day be their home. The
Seller may be stuck with any necessary repairs, even if the buyer caused them. As
always, repossession can be difficult if the buyer defaults on payments. Typically,
the Seller remains responsible for real estate tax and property insurance. Another
risk that face Sellers is that the negotiated purchase price of the home may be
under market value by the end of the Rent To Own contract. With the dozens of benefits
that a Rent To Own sale provides, these risks are heavily diluted, but it is always
important to be prepared for what can happen. The most important thing to remember
is that all language and terms of the Rent To Own should be detailed in the Rent
To Own agreement and completely understood prior to final signing.
Specialists
A Rent To Own Specialist is a service provider that has come to iRentToOwn.com to
offer services with self-proclaimed Rent To Own expertise. iRentToOwn.com Specialists
provide value-added services that fall within the parameters of the following Rent
To Own related categories:
- Background Checks
- Credit Improvement
- General Contractors
- Home Inspectors
- Home Values
- Insurance Providers
- Local Rent To Own
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- Mortgage Providers
- Movers
- Real Estate Attorneys
- Realtors
- Rent To Own Agreements
- Title Agencies
- Miscellaneous Real Estate
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A Rent To Own Specialist provides products or services that pertain to the categories
listed on the right. Specialists can be generated automatically through advertisements;
others have come to iRentToOwn.com directly to advertise their respective services.
Specialists that are not automatically generated pay iRentToOwn.com a monthly fee
to advertise themselves as individuals or their businesses on the site. iRentToOwn.com
believes it is important to provide our customers with exposure to only a select
group of Rent To Own Specialists in each state and therefore limits the total number
of Specialists advertisements.
In the Rent To Own industry there are hundreds of niche market Rent To Own firms
and websites that seek to find Buyers and place them in Rent To Own homes. Participating
in Local Rent To Own program may provide an opportunity for the potential Buyer
to gain more assurance throughout the Rent To Own process. Of course, on iRentToOwn.com
we also strive to provide you with all of the resources you need to be successful
in your process. Local Rent To Own is a category for these local Rent To Own businesses
to advertise within.
I want to advertise but my profession/services are not listed as a Specialist category.
What should I do?
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Thank you in advance for wanting to advertise. We recommend that you advertise in
the “Miscellaneous” Specialist category. We continue to generate increasing amounts
of traffic and all Specialist categories receive vast exposure to Buyers and Sellers.
I understand that Specialists advertise on a state by state basis, but my business
is not constrained by geography and extends across multiple states and even the
country, should I still advertise?
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Businesses in this situation that we work with actually see a much larger benefit
by advertising their firm and specialty across many states. iRentToOwn.com recommends
that you take advantage of the extensive traffic network our website possesses.
What is an example of what my Specialist advertisement will look like?
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What type of exposure will I get on iRentToOwn.com for my business?
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Our website receives thousands of hits every day from Real Estate professionals
across the United States. Every Specialist that advertises receives a tremendous
amount of exposure for their business.
