In the real estate market today, it can be tempting to follow reach out to one of those ads in the local paper or on Craigslist that are advertising rent 2 own homes in Portland OR. This option can be a win-win for both parties, but is it always the best method to get into a great house?
We recommend that you ask the questions below when meeting with your possible rent to own seller.
Here’s a few important (smart) questions to ask a local Portland rent to own house seller
“What is the length of the option to buy the house?” –
A rent to own house agreement, also called lease option home, is usually in two parts. There is a normal rental agreement with an added option to buy the house at a pre-determined price at a date in the future. Usually the time frame is a minimum of 2 years. Anything less and you may not reach the credit score goal that you’re aiming for to purchase the home. The longest option agreement time frame can give you more time to get your finances in order before obtaining a traditional home loan.
“How much of my rent will be put toward my purchase price?” –
Ask the seller! Recent federal laws have made providing “down payment credits” from your monthly rent very difficult, if not illegal in some areas and situations. Usually the monthly rent on a rent to own house in Portland is a bit higher than the monthly rent on a non-rent to own house (because you’re paying for the chance to purchase the house at a pre-determined price which ties the seller down as well). So just make sure to ask the seller if any portion of the rent is able to be contributed toward the purchase price if you do decide to purchase the house when the option is up.
“Who is responsible for repairs and damages on the property?” –
This will be depend on the agreement. Generally, you as the renter are responsible for general maintenance and upkeep. If a larger repair that wasn’t your own fault, often times the house seller / landlord is responsible for the remainder of the repairs after the first few hundred dollars. Again, this varies with every seller. If you’re working with us to find rent 2 own homes in Portland, we’ll walk you through how our rent to own program works and answer any of your questions.
“If I’m not able to reach my goal after the option period, can I extend?” –
If you are working with us, we’re usually very flexible in working with you to help us both reach the ideal end goal of you buying the house. As long as we can see that you’re on track to make things work and the extension makes sense for both of us, we’d be happy to work with you on making your dream of home ownership a reality. If your future seller is honest and fair, they will also give you this option. Make sure you talk to the seller of the house before you sign on the dotted line.
“I don’t have the best credit score. What do I need to do to lock in this home?” –
Again, any reputable Portland OR rent to own house firm like Portland Wholesale Property will give you resources and connections to help you increase your credit score while you’re renting the home. This may include a referral to a reputable and honest, Portland mortgage broker, credit counselor, or even our own internal guidance along the way may be an option. We realize that many of the tenant buyers who work with us on getting into a Portland rent to own house have bad credit. That’s okay. We’re experienced working with people in that situation. But as always, we have to protect our investment as well and we’ll only work with a tenant buyer if you show that you’re committed enough to consistently pay the rent on time and have a great chance of actually qualifying to purchase the home when the option agreement is up.
“May I take a copy of the rent to own agreement to my lawyer?” –
The answer should always be YES! If you’re working with a local landlord / seller of a rent to own house that tries to guide you against running your agreement by your lawyer or CPA, you should walk away. Nothing in the agreement should be hidden or glossed over. There are some really important elements in a rent to own / lease option agreement that you really should be aware of and we will walk you through the agreement line by line before you sign. This allows us both to be fully on the same page. Make sure that you do take some time to review the agreement to make sure you understand it and how it works. Any reputable rent to own seller will help you understand the agreement and encourage you to run it by a trusted advisor of your own.
What’s Next? Seeing Available Rent 2 own homes in Portland
With these six tips, it should be fairly easy to determine the good sellers from the bad ones. If you haven’t started your rent to own / lease option search START HERE! Simply fill out the short form on that page and start your search to see what we currently have available. Our rent to own houses in Portland tend to get snapped up fast so be sure to get on our list and open the email alerts we’ll send from time to time when a new rent to own house becomes available.
If you’d rather chat with someone about our program or about your situation call us anytime at (503) 334-4150 or shoot us an email through our Contact Page.