It depends on the contract you have with the owner.
The decision is between the two of you what will be paid by who and how much of that will be considered credit towards down payment on the rent to own purchase.
The actual owner is responsible for those charges. However, he could simply pass them onto you by raising rent.
Even if you already have a rental agreement in place, I’ll bet he took those costs into account in determining the monthly rent amount. Landlords rent to make a profit. While he is responsibile for those charges, ….guess who is actually paying them……
When I did mortgages on a daily basis I dealt with many rent-to-own/lease-purchase professional management companies. The contracts explained in detail all responsibilities, i.e., maintenance, taxes, insurance, etc., of both parties.
The idea of a rent-to-own is for you to establish good payment history and improve your credit to purchase this home. Tax records and home owner insurance is still the responsibility of the current owner. Monthly payments usually are such the funds are included to pay and possibly give the current owner a little profit. You will need to ask the owner about his home owner’s insurance. It may not cover you or your family and you may need to establish additional coverage.
If the idea is for you to purchase one day have the home’s value checked FIRST. You do not want to get into an agreement to purchase and the home is worth less than currently owed. I saw this a lot because many renting or leasing a home have exhausted their equity beyond actual value. Earnest money should never, ever exceed $5,000. If more is wanted this will be a “red flag”, usually pertaining to the home’s value.
Important, the contract should state a percentage of your monthly payments toward purchase, usually 10%. Earnest money is usually returned to be used toward the “closing” as well. Always pay with a check and maintain records. This will be necessary when applying for a home loan and never be late.
The “beauty” of a “rent to own” with a contract when you purchase you can do it as a “refinance”. Generally, this type loan, because of your outstanding payment record, is easier and provides lower rates of interest.
No, that is the owner’s responsibility.
It depends on the contract you have with the owner.
The decision is between the two of you what will be paid by who and how much of that will be considered credit towards down payment on the rent to own purchase.
The actual owner is responsible for those charges. However, he could simply pass them onto you by raising rent.
Even if you already have a rental agreement in place, I’ll bet he took those costs into account in determining the monthly rent amount. Landlords rent to make a profit. While he is responsibile for those charges, ….guess who is actually paying them……
When I did mortgages on a daily basis I dealt with many rent-to-own/lease-purchase professional management companies. The contracts explained in detail all responsibilities, i.e., maintenance, taxes, insurance, etc., of both parties.
The idea of a rent-to-own is for you to establish good payment history and improve your credit to purchase this home. Tax records and home owner insurance is still the responsibility of the current owner. Monthly payments usually are such the funds are included to pay and possibly give the current owner a little profit. You will need to ask the owner about his home owner’s insurance. It may not cover you or your family and you may need to establish additional coverage.
If the idea is for you to purchase one day have the home’s value checked FIRST. You do not want to get into an agreement to purchase and the home is worth less than currently owed. I saw this a lot because many renting or leasing a home have exhausted their equity beyond actual value. Earnest money should never, ever exceed $5,000. If more is wanted this will be a “red flag”, usually pertaining to the home’s value.
Important, the contract should state a percentage of your monthly payments toward purchase, usually 10%. Earnest money is usually returned to be used toward the “closing” as well. Always pay with a check and maintain records. This will be necessary when applying for a home loan and never be late.
The “beauty” of a “rent to own” with a contract when you purchase you can do it as a “refinance”. Generally, this type loan, because of your outstanding payment record, is easier and provides lower rates of interest.
Good Luck