Rent To Own MN

News, Tips, Information and Home Buyer Education

Things To Look For When Renting To Own A Home In Lino Lakes MN

Renting to own a home in Lino Lakes, or any city for that matter, isn’t a new concept… but the whole process of “renting to own a house” is a process that most people have questions about.

Well, you’re in the right place!

This article will walk you through what to look for if you’re looking for Lino Lakes rent to own houses.

1. Find The House You Want To Live In Long-Term… Not Just Rent

A lot of people who are deciding whether they should just rent or “rent to own” look at the whole rent to own / lease option process in the wrong way. Don’t look at it like you’re looking for a house to rent for a little bit.  Of course, you should find a house that is one you’d love to live in for a longer period of time (no less than 5 years).

Why?

Because with rental houses, you know it’s a temporary thing… so you’ll settle for a house that is less than ideal.

But since you’re really looking to get a house to live in for years and years with a rent to own… it should be one that you can see your family in for years.

Yes, you’re renting a “rent to own” house… but you should choose a house you’d be glad to live in for years just in case you do exercise the purchase option at the end of the lease term.

2. Terms That Fit Your Goals And Needs as A Lino Lakes Home Seeker

Not all rent to own houses in Lino Lakes have the same contract that goes with them. So make sure to find out the terms of the rental agreement and the terms of the purchase option as well.  Usually the monthly rent tends to be a bit higher with a rent to own agreement vs. a normal rental agreement… because you’re basically paying a premium for the ability to potentially purchase that house at a pre-determined price in the future. There’s a lot of value in that.

But with rent to own agreements you should also have some flexibility that protects you. Make sure there are no fees for not exercising the purchase option at the end of the agreement.

Also clarify with the owner of the house on who will pay for things during the rental term like…

  • Maintenance
  • Lawn care
  • Insurance
  • Repairs
  • Upgrades inside the house (new appliances, paint, etc.)

Get it all in writing who’s in charge of these kinds of things during the rental term.

3. The Value Of The Home – The Value Going Up?

One of the big benefits of a Lino Lakes rent to own home is the ability to lock in a home at a set price well in advance of you having to purchase it.

With a rent to own house contract, you agree on a monthly rental rate… a term of that rental (usually 12-24 months)… and a purchase price at a future date.

Because of this the purchase price usually doesn’t come at a discount for you… but, if you buy in the right Lino Lakes MN neighborhood (one that is increasing in value)… you could be earning instant equity if you decide to purchase the home at the end of your rental term.

See Our Current Lino Lakes Rent
To Own Homes Below!

If you still have questions about the rent to own process just call us anytime at 612-840-6507.

And if you want to be put on our local Lino Lakes Rent To Own Home List click the link below to see what’s available.

See Local Lino Lakes Rent To Own Homes >>

New Brighton MN Houses for Rent – Why rent when you can own?

If you’re looking for New Brighton houses for rent you may want to consider your other options as a potential home owner in the New Brighton area.

Most locals who are looking for homes to rent in New Brighton are likely looking at renting as their only option because of things like…

– Bad credit (and can’t get a traditional bank loan to purchase a home)

– Not enough funds for a large downpayment on the New Brighton home you want to live in

– … or you’re just used to renting and didn’t know there were other options.

How Many New Brighton Area Renters Are Turning To Home Ownership By “Renting To Own”?

If you haven’t heard of “renting to own” a home (some call it a “lease option”), you’re not alone.

But the “rent to own” concept isn’t new.

In fact, renting to own has become really common for many things, including furniture, electronics, cars, and more.

And the rent to own concept for houses has been around for decades as well.

So What Is A “Rent To Own” Home?

You can check out more info here on our website to learn more about renting to own a New Brighton home… but in basic terms a rent to own home is…

… Simply a home where the owner of the house allows you to rent the house, with an option at the end of the rental term to purchase the house at a price you and the owner agree upon ahead of time.

You’re not obligated to purchase the home… but the seller is obligated to sell you the home at that pre-determined price if you choose to purchase it at the end of the rental term.

So How Does A Rent To Own Program Help You Buy?

There are a few big benefits to New Brighton rent to own home programs like ours that can help many New Brighton area residents to become home owners.

Usually there’s something causing people to choose renting over buying.

If your credit is preventing you from getting a bank loan to buy a home, a rent to own program can give you the time and assistance to improve your credit during the rental term… so at the end of the rental term you can hopefully qualify for a bank loan and buy the home!

Or for many people the issue is the downpayment.  If you just don’t have the money you’d need to put down on the house you’d want to live in… many times you can find rent to own programs with houses in the exact neighborhoods you want to live in… with much much lower move in fees… and even sometimes guidance in helping you build up the down payment needed during the rental term in the rent to own agreement.

In the end, if you’re looking for New Brighton houses for rent… before you go and rent another house you may want to explore our New Brighton Rent to Own Program to see if it’s right for you.

Renting to own isn’t for everyone… but if it’s the best fit for you this could be your chance to get out of the “rental rat race” and into a home of your own that you actually eventually own.

For more information on our local Rent To Own Home (lease option) program submit the form on the top right of this page, or give us a call anytime at 612-840-6507.

Why Rent To Own Contracts Can Be GREAT For Investors in New Brighton

If you’re thinking of owning a rent-to-own investment property then you should definitely be thinking about a contract. That’s an absolute must! Here’s why rent to own contracts can be great for investors in New Brighton.

Real estate is a major investment, and, every investment needs to have a contract. You should never enter into an investment without a contract! And, the more complicated the situation, the more a contract will benefit you.

Why rent to own contracts can be great for investors in New Brighton

#1. Outlines Terms

Just imagine: if you have tenants and they’re supposed to pay $1000 a month but then they decide to only pay $200 a month. What about the rest of the money? If you don’t have a contract, it can be hard to prove that they were supposed to pay the higher amount, and it can be more difficult to apply pressure to get them to pay.

Or, if you don’t have contract, how much do they own to purchase the house? However, if you do have a contract, it makes it clear to both parties what the terms are so there are no questions.

#2. Outlines Responsibility

A rent to own contract outlines the responsibility of the tenant and of the owner. Who should shovel the driveway? Who pays property taxes? Who should replace a broken furnace? What if the furnace breaks down one day before the tenant buys the house?

A contract will outline these responsibilities in detail so that there are no questions about who needs to do what.

#3. Provides Protection

A contract protects both parties by clearly outlining who is responsible for what, and when. From payment to upkeep, from taxes to liability, everything should be written out clearly in the contract to protect both parties.

Moreover, a contract provides you as the owner in case the tenant decides not to pay – the contract will make it clear that you continue to be the owner of the house.

#4. Easier To Sell

When it comes time to sell the property to your tenant, a contract makes it easier for the sale to be completed. But there’s another consideration, too: what if you want to sell the entire property and rent to own contract to another investor?

Let’s say that circumstances in your life change and you need to move on from the agreement. A contract (along with the house) can be sold to another investor.

Summary

If you are thinking about owning a rent to own property then you should definitely use a contract – it helps you clarify terms and responsibility, it provides protections, and it can even be sold.

These are 4 main reasons why rent to own contracts can be great for investors in New Brighton

If you have more questions about rent to own and how you might become a rent to own investor, click here now and fill out the form or call our office at 612-840-6507.

Renting An Apartment vs. Renting A House in Fridley

So, you’re looking for a place to rent in Fridley?

As you’ve already seen… there are a lot of options in the Fridley area for housing.

All the way from apartments in Fridley to rental houses in Fridley… condos… mobile homes, and more.

But if you’re struggling to decide if you want to rent an apartment or a house… check out our tips below on the “pros and cons” of renting a local apartment vs. the pros and cons of renting a local house. (also, see our blog post on pros and cons of Rent to Own Programs for more detailed info >)

Renting A Fridley Apartment –

There are lots of great apartments in Fridley.

You’ve probably found new apartment complexes with all kinds of amenities like a swimming pool, gym, rec area, and all kinds of other perks.

And you’ve probably came across some bare bones apartments that just gave you 4 walls and not much else.

So here’s some Pros for renting local apartments:

  • Often rent is cheaper with an apartment vs. renting a house
  • Sometimes some services are included in your rent (trash, water, etc.)
  • Maintenance is 100% taken care of by the management (if you’re in a bigger complex, usually the maintenance person is on-site and can repair things quickly)
  • Sometimes there are more apartment units available than houses you want
  • Amenities are often included like rec rooms, gyms, pools, and more.
  • Sometimes you can pick up your neighbors wifi!

Here are some Cons of renting local apartments:

– You have neighbors sharing walls with you (sometimes on 3 sides of you)
– The stairs: If you get an upstairs apartment it can be a pain getting your furniture in and out
– Parking lot dings: If you’ve lived in a large apartment complex where you’re parking in a shared parking lot… you’ve likely experienced a ding or two from your neighbors on your car.
– Usually you don’t get a yard that is just for you (if you do, it’s usually very very small)

So what about renting a house in Fridley Houses Should You Start to Look At

In the end, I can’t say that local Fridley apartments are better than houses to rent or not.

It’s really down to your preference of what you want.

If you want more space and room to roam (without having to share walls with neighbors)… then renting a house will be the route you want to go.

If you’re looking for lots of options, a lower price, and extra amenities like a pool… take a look at the local apartments.

Or, a 3rd option for you is a local Fridley rent to own home program.

Not sure what a “rent to own” home is?

Check out this page on our website that walks you through what a rent to own home (lease option) home is.

If you’re interested in seeing the local Fridley rent to own homes that are available click the link below to get on the list and see available homes.

Or call us at [phone] anytime to ask us questions and see if our [market_city] Rent To Own Program is right for you!

See Available Rent To Own Homes >>

Do I Earn Equity With A Rent To Own Agreement? – Shoreview Rent To Own Program

This question comes up again and again… and honestly, the answer this question has changed in recent years based on new laws enacted that affect what a home owner can do when they’re selling their house under a rent to own agreement.

One of the big benefits of owning a house is that you (hopefully) earn equity as you make payments and pay down the mortgage.

One thing many home owners don’t take into account is that really during the first 5 years (or more) the majority of your mortgage payment to the bank is interest… and very little of your payments for the first 5 years actually goes to pay down the principal and earn you equity.

But on the flip side, the 2nd half of your mortgage is usually where the majority of your equity is earned since most of those payments go to the principal.

So how does it work with a rent to own agreement?

When you do a lease option / rent to own home in Shoreview there are various types of arrangements you can choose to take… but the most common is this:

  1. You find the rent to own house you like and apply
  2. You and the rent to own house owner agree on a monthly rent, a “move in” type fee that basically pays for the privilege to have the opportunity to purchase the home late, and the price of the purchase at the end of the rental agreement if you want to buy it.
  3. You move in and pay your monthly rental payment and treat the house great (since you may be owning it someday).

In the old days of lease options / rent to own agreements, a home owner was allowed to let a portion of the monthly rental payment be applied to the purchase price as a pre-paid down payment.

This was great for everyone!

It helped the tenant buyer earn money off of the purchase each month they made a payment… and it helped the house owner sell the house more often at the end of the rent to own agreement since now the tenant had some “equity” in the deal.

But in recent years a bill was passed in Washington D.C. called the Dodd Frank Act that has placed restrictions on rent to own programs… and has limited the ability to apply rental payments to the end purchase of the home.

But There Is Still Opportunity To Earn Equity With A Rent To Own Contract

One of the great benefits of renting to own a Shoreview house is that you get the ability to have the home seller agree to sell you the house for a price you agree upon today.

And the beauty is… if the market does really well during your rental term and the house goes up in value a lot… the seller can’t raise the price on you.

So whatever home value growth happened during your rental term over and above the sales price… that’s your equity!

Now, is there a guarantee that the value of the home will go up and you’ll earn equity?

No, but just make sure that when you’re negotiating the rent to own agreement that you really do a bit of research and see if the area the house is in has a good chance of increasing in value or not. Then base the purchase option price on that.

Before we wrap this article up… you may have the question of whether you HAVE TO buy the house at the end of the rental term.

The answer is no. If you decide you just don’t want to (or can’t) buy the house at the end of the rent to own agreement… you can just continue to rent if the owner will allow it or you can leave. You’re not bound to purchase the house. However, the seller is bound to sell you the home at the predetermined price as long as you followed the contract terms (i.e. – you didn’t miss payments, you weren’t evicted from the house because of a breach of the rental agreement, etc. etc.).

If you’re looking to get more info about our local Shoreview Rent To Own Homes Program… simply give us a phone call at 612-840-6507 or fill out the form on this website to see our current LIST OF AVAILABLE RENT TO OWN HOMES here >>

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