- RENT TO OWN / LEASE OPTION PROGRAM-
Home buyers & renters, do you wish to know more about owning a home of your
own, on a Rent to Own basis? My name is Donald J. Leske II, I am a Licensed Real Estate
Agent and Managing Broker of BCI Properties, LLC in the Tacoma area of WA State.
I am a bit long winded..., so please bear with me.
Basically most tenants would rather own a home than rent one.., but many people
simply cannot come up with the needed credit scores and/or down payment needed
from one to five years. A person who has a "hope" of buying a home and is willing
to pay rent with an option to buy......, can be counted on to:
- Pay their rent on time! (or loose their option to buy)
- Pay a higher rent of generally $200 more, for the Option to Buy your property.
- Handle more of the maintenance, clean up and repairs than the average renter.
- Will often be willing to pay a higher retail sale price for your home, more often
than most buyers.
What we require of renters;
- A qualified job, meaning that they have been on a job at least a year and it is full time
plus if their co-buyer or spouse is to be used to qualify then they must also have a job
or other qualifying income.
- Enough cash to pay screening fee, 1st months rent plus a deposit, upon approved
- Willing to pay for and be approved with a basic screening, which checks for criminal
background and any past evictions, credit etc. No evictions or Felons on last 5 years
- Plus tenant must meet other standards that vary from property to property, such as
Non Smokers, No pets etc. Some home owners who are willing to rent their home
will not allow anything that may damage their home.
What are the Fees and are there any hidden costs or requirements involved?
- FEE. Tenants who take our Lease/Option program will only pay on average $200
extra a month added to rent. Non refundable. This can vary depending on mutual
acceptance of agreeable terms.
- Renters Insurance.., may be required often the cost is $10 to $20 a month, which
will cover damages that a tenant may cause.
- Maintenance. Most owners who agree to work with this program, will expect the
tenant/buyer to treat their home as their own in terms of keeping up the maintenance.
Example; if a toilet plugs up an owner will expect the tenant/buyer to be responsible,
as if they already own the home.
- HOA Dues. Often with newer homes in a community of similar homes, there is a
Home Owners Association which generally has a monthly or yearly fee that the
owner must pay.....and they may expect the tenant/buyer to pay it since they occupy
the home. An HOA has specific rules and regulations which a tenant/buyer and owners
must comply with. These may include, no riding bicycles or skateboards on the sidewalks,
careful regulations of how the yard must be cared for and how many vehicles may be
parked in front of a home. Some HOAs even cut your grass for you and keep up the
NOTE: Please remember that owners generally are making mortgage payments to a
bank or lender, which puts a lien on the property. The risk to the tenant/buyer is that if
the owner does not pay their mortgage payment on time, then their lien holder could
force a foreclosure on the home which would put the tenant/buyer in harm's way. In
time a tenant could be put on the street by the bank or lien holder. To protect all parties
involved we ask the owner to give us a Letter of Notice to be sent to their lien holder or
bank which would instruct them to notify BCI if the owner misses or is late on even one
payment. This letter gives BCI no other rights other than to be informed.
See page 2 for additional information.....