Rent to Own concept is simple to understand and has lot of features, benefits & risks that are program specific.
What is a Rent to Own?
Rent to Own can be simple explained as renting with the option to buy at the end of the term.
I like the concept but how do I select my new home and how much can I spend?
We will suggest you a budget, based on a number of factors such as monthly lease budget, downpayment and eventual purchase price in the Rent to Own program. These factors all go into helping you choose the right home for the right price. After it is established that you are comfortable for Rent to Own Program, we will introduce you to a real estate agent that is familiar with the area and you can begin shopping for your new home.
I like the idea of shopping MLS listings but I already have my eye on a particular house?
No problem, provided the house you have your eyes on, meets the our criteria of property appreciation and good economic indicators, we will try to buy it for you and make it your own home!
I have bad credit and have been turned down by banks – can I still Rent to Own?
Yes – in fact most tenants we work in our Rent to Own pogram have credit issues that need time to heal. Perhaps you had a past bankruptcy, consumer proposal or some debts that need to get repaid. Provided you have stable monthly income and the ability to repair your credit, we can get you in your dream home right away.
I like your program but don’t have a downpayment – can I still qualify?
We require at least 5 % of Deposit (Initial Option Consideration money) for getting you into the Rent to Own program. The good news is that unlike the banks, in our Rent to Own program, this money could come from anywhere, like borrowed money or money gifted to you.
What Makes Someone A Good Rent to Own Candidate?
How long does it take to get into my new home through the Dreamlife Rent to Own Program?
A typical transaction can take 6-12 weeks. It depends mainly on your selection criteria and availability of the house with those specifics. If everything works at the desired speed the entire Rent to Own process could be completed in as little as 6- 12 weeks.
What sort of legal agreements are involved in Rent to Own?
A Rent to Own transaction is typically governed by three legal agreements:
Can I make improvements to the house even when I am under the Rent to Own program?
Yes! We ask that you consult us before any major improvements however making improvements is a great way to add value to your new home.
Whats the difference between this Rent to Own and Renting?
From the time you move in, you have ‘ownership’ mindset as you are going to be the owner of this house soon. You already have an exclusive contract to buy this house. Due to this, you are able to make changes to this house and renovate/ do landscaping, do upgrades as you would in your own home and best part is what ever you are doing is adding to the value of your home !
What are the advantages of Dreamlife Rent to Own?
There are several advantages to Rent to Own over Renting and some are listed herein:
What is the duration of this Rent to Own program?
We consider the time that they will need to gather the down payment to buy that property and also to build their credit to qualify for mortgage. Usually the period is 1-3 years.
How are the monthly payments calculated in your Rent to Own program?
The monthly payments are calculated taking into account the rentals in the area and adding to it the amount you need to accumulate to complete your total down payment till the end of the term.
Will my monthly payments change throughout the Rent to Own term?
That is also the best part in this Rent to Own program. The monthly payments are fixed for the duration of the program.
Are you involved in the selection of the house / property?
Dreamlife Property Management Inc. is involved in the process to only make sure that the house that you have selected serves as a good investment for you as well as our investor as that will decide the appreciation and would make it a great investment for both of you.
Who owns the house while I Rent to Own?
One of our investors will own the house while you are in the Rent to Own program.
Do I need a down payment?
Yes, for every rent to own we must have an initial minimum down payment. This minimum is determined by the price of the house (IE: the more expensive the house, the more deposit that is required). We need a minimum of 5 % down payment.
How much down payment will I have at the end of the Rent to Own term?
Depending on your application details, we calculate the amount that you may need to secure your own mortgage at the end of the term. Through this program, we see to it that you will have that amount available by the end of the program. The minimum we have built up during the term is 7% of the final cost of the house. This will be your 5% down plus 2% for your closing costs at the end of the Rent-to-Own program.
How do you determine the buy back price of the house after the Rent to Own Program?
We go by the historical averages in the area. We use various resources that analyse areas and the locations to give use appreciation rates for a property. We do calculate the future price at a conservative rate as we want the house to appreciate to that value for you to qualify at that price. We therefore give a lot of importance to the location and state of the house.
Do we need a lawyer?
The Contracts and agreements are created and approved by a real estate lawyer. We however, do encourage you to have your lawyer go through all the agreements before you sign them.
Who is responsible for maintenance/repairs while I am in Dreamlife Rent to Own program?
In this Rent to Own program, we treat you as a home owner and hence the maintainence and the upgrades will be entirely your responsibility. We do a thorough home inspection, in which the home inspector will outline majority of the defects and hence we may know before hand the issues that may arise during the term of Rent to Own and you can make your decision accordingly.
Who is responsible for utilities in Rent to Own program?
You will be responsible for paying all utilities which can include electricity, gas, cable TV, internet service, etc.
Who pays the taxes on the home?
The investor(s) who will be holding the title of the home until you buy it from the investor and will be on title, you will be responsible for paying the taxes on the home.
Who pays the insurance on the home?
The investor who will be holding the title to the home, until you purchase purchase the home, will be responsible for paying the insurance on the home. We highly encourage you to buy tenant’s insurance for yourself. This insurance will cover your for items inside your home such as carpets, appliances, personal belongings, etc.
What if I decide not to exercise my option to purchase?
You absolutely have the option of not to buy this house at the end of the Rent to Own term. However we do not recommend this as if you decide not to exercise your option, you will forfeit the initial option consideration money as well and the monthly option consideration money that you have accumulated with us as this only could be applied to the purchase of this home.
What would be my options if I cannot buy the home?
We can offer you some options if that happens like we could give you more time to build your credit so that you can qualify for your own mortgage. We are open to discuss in details as we go along what arrangements can be done to best accommodate your needs at that time. We will try our best always that this becomes a win-win for all the parties involved.
What is the main criteria that will decide my success in this Rent to Own program?
The criteria we use to qualify are:
1) At least 5 % downpayment.
2) Repairable credit in 1 -3 years
3) Stable household income of $50,000/year.
4 ) The main criteria is your mindset. You have to shift your thinking from renting to owning. There are several factors and advantages that you get as a Rent to Own client with Dreamlife Property Management Inc. but we will need a serious commitment from you about being committed to become a home owner and making this a real win-win !
I’m Ready Now to Rent to OWN, What is the Next Step?
The qualification process for our Rent to OWN program is simple. All we need is your application to get started – you can APPLY NOW using our ONLINE APPLICATION FORM. We will then contact you within 2 business days once we have reviewed and processed your application.