RentToOwnYourHome.Ca is one of Ottawa’s Lease Option leaders…we are now a full service RentToOwn consultantcy firm. What does this mean? We have altered our business to focus more on assisting people with their RentToOwn needs. Our expertise in the Lease Option process will allow us to ensure that these people learn the necessary information and details on how a RentToOwn works.
If you are a Tenant who is willing to enter into a RentToOwn agreement and have an Investor who is willing to purchase your home…Contact Us. If you are an Investor who wishes to buy a home for someone in a RentToOwn process, and have the Tenant already…Contact Us. If you are a landlord and want to convert your Tenant into a RentToOwn Tenant…Contact Us. We will work with your Tenant and Landlord to make sure that everyone understands how a RentToOwn works and the legal/ethical and financial details about it.
Throughout the RentToOwn Process you will need to sign a few forms to ensure that everything is legally binding and that your investement is secure. The forms you will sign as a Tenant are the Option to Purchase and the Agreement to Lease. These forms are explained to the right.
We are experts in preparing these forms and will fully explain them to you prior to proceeding with the RentToOwn process.
The Option to Purchase is a form you will sign to ensure your right to buy the home after the RTO Term.
We use an appreciation of 15% over 3 years (6%, 4.5% and 4.5%), 18% over 4 years and 21% over 5 years. From your purchase price add the appreciation and you will come up with the amount you have the right to buy your home for at the end of the RentToOwn Term.
We have determined the appreciation numbers through market research and past MLS trends.
This is your Rental Agreement. Once you have found a home we will figure out the monthly rent by adding the cost of the mortgage, property taxes, landlords insurance and your Lease Option Credits. This will be you rent for the duration of the RTO Term.
You will also be responsible for all utilities and maintenance of the home (the utilities will be in your name) and must maintain Tenants insurance during the term.
During the RTO Term you will be a Tenant...so the rules and laws of the Tenant/Landlord relationship will exist. To find out more about this go to: http://www.ltb.gov.on.ca/en/index.htm
Ok, so you want to do a RentToOwn. Well, there are 2 parties involved in a RentToOwn transaction, the Tenant and the Investor. The Tenant will Rent the home from the Investor for a period that is determined by their credit and their ability to qualify for a mortgage.
Once you have a Tenant and an Investor, then read Step 2.
We will meet with both the Tenant and the Investor, at our office, and together we will determine the monthly rent, Option to Purchase (Tenants right to buy the home) and Lease Option Credits (how much the Tenant will save) based on the value of the home to be purchased.
Assuming both parties agree with the financial side of the RentToOwn transaction, proceed to Step 3.
Now that both parties agree on the financial obligations of the RentToOwn, its time to start thinking about what kind of home and where to purchase. Our parent company, Capital Homes Realty, will work with both parties to ensure that the Tenant finds the right home at the right price and will take care of drafting up all the paperwork…the Agreement to Lease and the Option to Purchase. The sale of the home will be conditional for a period of 7 – 14 days. During this time we will work on Step 4.
Congratulations! You have purchased a home and are now almost ready to begin the RentToOwn stage, but you do want to make sure you’re legally protected, right? We will encourage you to visit our Real Estate lawyer who will help make the RentToOwn forms legal and binding…so at the end of the RentToOwn term there are no concerns about how to proceed. The sale of the home will be conditional on both parties getting the go ahead from the Lawyer.