Rent To Own Programs have a bad rap. Unfortunately, there are people in this world who will take advantage of others. That’s why I wanted to write a post about what to look out for when considering a Rent To Own program because, frankly, we are NOT all created equal.
Rent To Own programs are complex!
Rent To Own a home sounds simple right?! That’s why so many people think they know how to structure one. The truth is that with a properly structured Rent To Own, there is a lot of paperwork involved. You want the right paperwork in place to protect your best interests! You will also want to ensure that the people you are doing business with are ethical, and educated in how to properly structure a Rent To Own deal. I have heard many horror stories of people putting individuals into homes knowing that they will not be able to make the payments and these folks end up losing all or most of their deposits and often forced out of their home. I have also heard stories of people that did not structure the deals properly and, at the end of the term, the tenant buyers were unable to qualify for a mortgage. I am writing this blog as if I were in your shoes, considering a Rent To Own program. I believe knowledge is power, and having the knowledge to make an informed decision is essential when it comes to making (probably) the largest purchase of your life-your home!
Rent To Own Programs are unregulated!
In Canada, there is no regulatory body governing Rent To Own businesses. This is not uncommon for a variety of businesses BUT it is something that you should be aware of. Unlike professions such as realtors, electricians, and nurses that have an examination/registration to ensure they are in good standing, anyone can set up a Rent To Own business. There is no mandatory course, test, or exam to do so. Does this sound scary? It doesn’t have to be! Just know that you will want to ask questions before signing up and handing over your hard earned money.
Rent To Own programs are exciting!
It is impossible to not get emotional (excited) when entering a Rent To Own program. You are one step away from home ownership. You will inevitably start dreaming of your new home, imagining how you will feel, and the memories you will make there. Sometimes people do not want to tell their friends and family that they are entering a Rent To Own program. I get it. If you have someone in your life that you trust to look out for your best interests, review the terms of the agreement with, and help vet the company you use I would recommend asking them to be there with you in each step of the process. You want someone who can see beyond your excitement to ensure you are set up for success.
Does it sound too good to be true?
You want to get to know the people running the business. Find out about their experience and education. You should seek legal advice, and a good Rent To Own company will encourage that you do so. This is another way to ensure that your excitement doesn’t cloud your judgement. Your job is to be excited-Rent To Own is exciting and should be a happy time in your life.
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