QR Code Link to This Post
You've seen Rent to Own ads here. You may have heard Rent to Own stories on the news. And you may have even received warnings. So, you may be wondering: Is it legitimate?
First, YES, rent to own is legitimate! There are good rent to own providers who care about putting together a win-win solution for you. They provide a wonderful service to help you get into a home of your own.
Second, Not all rent to own companies are the same. There are a variety of models out there. Know what you are getting into.
Third, There are fly-by-nighters out there who may not be reputable. There are in every industry. Beware of them!
So, how do you know if you are dealing with an honourable, professional provider? Here is a check-list to help you avoid an unhappy ending.
1. Are they setting you up for win-win? Do they collect a reasonable deposit at the beginning and have a plan to get you eligible for a mortgage? Anything less than a 3% deposit on the value of the property is a recipe for potential disaster.
2. Are they transparent with what will happen to your deposit if you default on the deal?
3. Do they have extensive paperwork and lawyer-drafted contracts? Never get into something with informal paperwork or simply verbal agreements!
4. Do they encourage you to seek Independent Legal Advice before signing your documents?
5. Are they going to be with you throughout the deal, or will they be assigning it to a third party?
6. Do they have a credit coaching component in their program?
7. Are they a member of a professional association that holds them accountable?
There are many reputable companies that meet these requirements, others that don't, and some that don't have a clue about the above.
To learn more, contact us at www.FVrent2own.com, or
show contact info
.
Also, you can check out the website www.CAROP.ca (The Canadian Association of Rent to Own Professionals) for a list of rent to own providers in whom you can have confidence.
Yours truly,
Ron Geddert, president,
Fraser Valley Rent 2 Own (www.FVrent2own.com),
member, Canadian Association of Rent to Own Professionals (www.CAROP.ca)