As you see more signs in front of homes indicating that you could “rent to own” or “lease to buy”, you might be wondering if this offer will work out for your advantage.  

     Following are what you should know about a rent to own. It may have several structure options, but most contain these items:

1. This type of rental payment is just like any other kind of renting or leasing. All the main items are applicable, such as late fees, and failure to pay the rent could possibly lead to your eviction in the property.

2. There will be an option price, or the purchase price of the property.

3.  In a lease to buy, you will have a payment option or otherwise known as the down payment. This is a fee upfront to be given to the owner or the person in charged of the property. This payment will be credited to the purchase price and in most cases non-refundable in the event you do not exercise your option to purchase the property.

4. A rent credit is usually applied to the purchase price if you exercise your option to buy the home. The Rent Credits are not considered as actual money sitting in a bank account, but this fund is necessary in lowering the purchase price of the home, or later on for the closing costs.

What benefits can a rent to own give you?

1. A rent to own home is much easier than other kinds of owner financing. Since a rent to own is easier to understand and structure, it tends to be more available nowadays. Rent to own terms is at least 12 to 24 months and some even as long as 48 months, giving you enough time to resolve whatever credit issues you may have.

2. You are not obligated to purchase the property, remember that this is an option offered by the homeowner to you. In most cases, this will benefit you. Instead of throwing rent out, it’s much better to consider getting rental credits and a locked in purchase price. Aside from ensuring that you and your family will have a home to call your own, this is also a wise investment, since acquiring a property is a very good real estate investment.

3. On average, the monthly payment and the down payment is lower compared to other types of owner financing. You do not quite shoulder the responsibilities of ownership until you bring your own financing.

     Rent-to-own has become very common in today’s real estate market. If you are in search of a new home, this deal could be beneficial for you. You might want to consider it this way; a rent to own surely works for you because as soon as you decide to buy the home, you need not spend more money on moving costs since you are already settled in comfortably.  Consider the money on rent as your monthly investment towards owning a home for you and your family.

Some usual tax benefits

Some tax benefits that are applicable on your first home are also valid for your retirement home. For instance, if you have taken a home mortgage to buy your second home, then you can claim tax deduction on the monthly payments you make to pay off your debt. Likewise, to ensure the safety of your new home, you must have taken an idyllic homeowners insurance policy. You can get tax benefits on the premiums of the insurance policy. Yet another area where tax deductions can be claimed is property taxes. These are some standard tax advantages that you get on buying your second home.

Rental income and tax benefits

Under normal circumstances, you won’t be living in your second home. If you rent out your unused premises, you can open a new source of income. In addition to getting regular rental income, you can also claim a number of tax deductions. There are three different scenarios of getting tax benefits.

You use more and rent out seldom- If you live in your second home and rent it out occasionally, that too for less than 15-days, then your will not get any tax benefits associated with rental. You don’t have to report your rental income in your annual income tax statement.

You use less and rent out regularly- In the second instance, you use your vacation home for less than 15-days in a year. For the remaining time period, tenants use your home. In such a case, you would have to declare your rental income in your tax statement. However, you become eligible for several tax benefits. Like, you can claim deductions on any repair work or alterations you undertake. You also get tax benefits on the rectification of damages caused by natural disasters as fire, earthquake, hurricane, tornado, etc. With time the value of the rental property depreciates; you can deduct the annual depreciation too. Another area where massive tax deductions can be applied is rental property management.

If your rental income is profitable, then you can deduct all the expenses pertaining to the management of rental property from the profit. However, if your rental property is not that profitable, then passive activity rule becomes applicable. According to this rule, if your rental income falls short of $100,000, then you claim a loss of at least $25,000. Things change slightly when your rental income is more than $100,000. In this scenario, the rental loss will continue to decrease until the rental income reaches the $150,000 mark. Thereafter, the rental loss won’t be considered.

You use some and rent out the rest- If you live in one half of your second home and the remaining half you have given on rent, then too you qualify for tax benefits. In this instance, you would have to report your rental income.

In nutshell, your second home is not just another lifeless property; it is a unique equity-building vehicle that helps you garner money easily and quickly.

There are many sites to choose from including Craigslist, Roommates.com, and WhatsTheRent.com, but all require a well-written ad in order to attract more hits. The first thing you should think about is your headline, which will most likely be the first thing a potential renter will read. Think about what the number one selling point of your rental is, and use that in the headline. Perhaps you just installed new carpet or appliances, or maybe you are next to the mall, or next to a subway or bus station, or within walking distance of a college. If you are looking for someone to share your unit with you, perhaps you want to express your type of personality. Maybe “Quiet easy going 25 year old renting out a room in my new condo – $400/mo, all utilities included.” Another good way to go is with something funny or unusual to make you stand out from the other listings. Perhaps something like “Free toilet paper!!!” Remember, there are often hundreds of listings put up each day in any given city, so you need to stand out to give people a reason to click on your ad.

Next, you need to make sure that you have valuable information in your description to keep their attention. “For more info call…” will not cut it! Photos are a must. Choosing a place to live is a very important life-altering decision for anyone, and seeing a picture of the room is worth a thousand words. Spend a few moments taking photos of the inside and outside of the property. You might also want to think about cleaning up a bit for the photos, unless of course you are ok with your renter treating your property the same way!

Next comes the written description of the rental itself. You want to be sure to include lots of valuable information, yet at the same time keep it brief and to the point. Avoid personal information such as “I just got divorced and need to rent out my extra room.” Put yourselves in the shoes of a renter. Why would you be moving to that neighborhood? What kind of information would you want to know? Look at some other ads placed in your area and see what your competition is saying. Consider adding information about the size of the room, bathroom, and closet. Are you near public transport? Is there parking? Are utilities included? If not, what is the average cost the renter can expect? How far away is the college or the downtown area? What’s your pet and smoking policy? Is there a washer & dryer installed? If not, how far is the nearest laundry? What are your lease terms? Also, be sure to include anything that makes your property different from the other options out there. Perhaps you are offering a furnished room, or have a home theater or gym, or maybe there is a grocery store or coffee shop across the street, or maybe your unit has a large basement that allows for lots of storage.

If you are going to be sharing your unit with your renter, it’s a good idea to tell the readers of your ad a little bit about yourself and what kind of roommate you are looking for. However, you must remember to abide by the Fair Housing Act, which makes it illegal to place a discriminatory ad stating a preference for things including, but not limited to, race, nation of origin, religion, and handicap. It is, however, perfectly acceptable to say that you’re looking for a person who will keep your place clean, does not smoke or use drugs, or does not throw wild parties every night. Unless of course that is what you are looking for in a potential roommate! Most online rental websites have an info page on the Fair Housing Act, so refer to that if you have any questions.

An important thing to remember is that you are in competition with your neighbors, and you have to write an ad that makes your room or unit stand out from the rest. You need to grab the person’s attention and also answer all their potential questions. If you follow these simple tips, hopefully a good quality renter will be sending you an email instead of your neighbor. The sooner that happens, the sooner you can start generating rental income!

There are many sites to choose from including Craigslist, Roommates.com, and WhatsTheRent.com, but all require a well-written ad in order to attract more hits.  The first thing you should think about is your headline, which will most likely be the first thing a potential renter will read.  Think about what the number one selling point of your rental is, and use that in the headline.  Perhaps you just installed new carpet or appliances, or maybe you are next to the mall, or next to a subway or bus station, or within walking distance of a college.  If you are looking for someone to share your unit with you, perhaps you want to express your type of personality.  Maybe “Quiet easy going 25 year old renting out a room in my new condo – $400/mo, all utilities included.”  Another good way to go is with something funny or unusual to make you stand out from the other listings.  Perhaps something like “Free toilet paper!!!”  Remember, there are often hundreds of listings put up each day in any given city, so you need to stand out to give people a reason to click on your ad.

Next, you need to make sure that you have valuable information in your description to keep their attention.  “For more info call…” will not cut it!  Photos are a must.  Choosing a place to live is a very important life-altering decision for anyone, and seeing a picture of the room is worth a thousand words.  Spend a few moments taking photos of the inside and outside of the property.  You might also want to think about cleaning up a bit for the photos, unless of course you are ok with your renter treating your property the same way!

Next comes the written description of the rental itself.  You want to be sure to include lots of valuable information, yet at the same time keep it brief and to the point.  Avoid personal information such as “I just got divorced and need to rent out my extra room.”  Put yourselves in the shoes of a renter.  Why would you be moving to that neighborhood?  What kind of information would you want to know?  Look at some other ads placed in your area and see what your competition is saying.  Consider adding information about the size of the room, bathroom, and closet.  Are you near public transport?  Is there parking?  Are utilities included?  If not, what is the average cost the renter can expect?  How far away is the college or the downtown area?  What’s your pet and smoking policy?  Is there a washer & dryer installed?  If not, how far is the nearest laundry?  What are your lease terms?  Also, be sure to include anything that makes your property different from the other options out there.  Perhaps you are offering a furnished room, or have a home theater or gym, or maybe there is a grocery store or coffee shop across the street, or maybe your unit has a large basement that allows for lots of storage.

If you are going to be sharing your unit with your renter, it’s a good idea to tell the readers of your ad a little bit about yourself and what kind of roommate you are looking for.  However, you must remember to abide by the Fair Housing Act, which makes it illegal to place a discriminatory ad stating a preference for things including, but not limited to, race, nation of origin, religion, and handicap.  It is, however, perfectly acceptable to say that you’re looking for a person who will keep your place clean, does not smoke or use drugs, or does not throw wild parties every night.  Unless of course that is what you are looking for in a potential roommate!  Most online rental websites have an info page on the Fair Housing Act, so refer to that if you have any questions.

An important thing to remember is that you are in competition with your neighbors, and you have to write an ad that makes your room or unit stand out from the rest.  You need to grab the person’s attention and also answer all their potential questions. If you follow these simple tips, hopefully a good quality renter will be sending you an email instead of your neighbor.  The sooner that happens, the sooner you can start generating rental income!

While it is certainly true that money spent each month on rent does not get the renter any closer to homeownership while each monthly mortgage payment makes the homeowner one step closer to owning the property completely. However, this is not the whole story. Renters should also consider the amount of money they will be able to save annually for the purpose of purchasing a home by living in a rental property right now.

A Smaller Apartment Can Lead to a Bigger House

Some would be homeowners find renting a small apartment can allow them to start saving for the purpose of purchasing a house in the future. Renters who are willing to sacrifice comfort now and stay in the smallest apartment possible will likely be able to save the most money towards purchasing a home.

In general the monthly rent for an apartment is based on a value per square foot. This value may vary slightly from one property to the next but is likely to be very similar in properties in the same general area. This means apartments which are smaller in terms of square footage are likely to be less expensive overall. Therefore renters who would normally feel more comfortable and able to spread out might opt for a smaller apartment just so they can begin saving more money for their home purchase.

Budget Wisely to Save Money

Renters who want to save money for the purchase of a home while renting an apartment should understand their monthly rent is not the only factor which may prevent them from saving money while they rent. For example entertainment costs should carefully be considered when a renter is trying to save money. Most rental properties have a fully equipped kitchen making it ideal for the renter to prepare meals at home as opposed to going out to eat. Renters who cut down on eating dinner out may find they are able to save quite a bit of money each year.

Likewise renters who are spending an excess amount of money on superfluous items may have difficulty saving for a house while renting an apartment. Examining all current monthly expenditures can help the renter to determine where there is the potential for financial savings. Making changes such as debt consolidation may be one way to decrease monthly bills but this is certainly not the only solution. Renters can make other changes such as canceling subscriptions to premium movie channels, minimizing cell phone plans to include only the amount of minutes used each month and making changes to insurance plans to result in an overall savings. Changes to insurance plans may include having your car and renter’s insurance covered by the same carrier. Many carriers offer discounted services to renters who are willing to bundle their services. All of these slight changes can help to enable a renter to save money for a home purchase in the future.

When it comes to determining whether you should rent a beachfront Oahu vacation home or an inland vacation home, you may be unsure as to which option is best for you. One of the best ways to make your decision involves examining the pros and cons of each of your options. For your convenience, a few of the most influential pros and cons, of both inland and beachfront vacation home rentals, are outlined below.

As for inland vacation home rentals, you will find that there are a number of benefits to renting them. One of those benefits is your ability to save money. Inland Oahu vacation homes are known for their affordable costs. This is because many individuals pay extra to get an ocean view. If you do not mind not having easy beach access or an amazing view to wakeup to each morning, an inland Oahu vacation home may be your best option.

Another one of the many benefits to renting an inland Oahu vacation home, as opposed to a beachfront vacation home, is the convenience. If you are interested in getting out and exploring all that Oahu has to offer, an inland vacation rental may make this easier for you. Although there will be some variances, you may find that many inland Oahu vacation home rentals are conveniently located. This may not only save you money, but it may also help to limit the amount of time you spend traveling.

As for the cons or downsides to vacationing at an inland Oahu vacation home, you will really only find one. That downside is the fact that you are away from the beach. If most of your intended vacation activities include water activities, such as swimming or snorkeling, you may find inland vacation home rentals inconvenient. With that in mind, it is also important to remember that Oahu is small in size. Many inland vacation home rentals still put you within a reasonably close distance to the coast and all of the beautiful Oahu beaches.

As for Oahu beachfront vacation rentals, you will find that there are a number of benefits to renting them. One of those benefits is the view. If you are interested in waking up each day to see the ocean, an Oahu beachfront vacation rental may be perfect for you. Of course, beachfront vacation rentals are ideal for all trips, but you may enjoy them the most if you are on a honeymoon or a romantic getaway.

In keeping with the beach, you may also enjoy having easy access to it. Oahu beachfront vacation rentals are ideal for those looking to spend the majority of their Hawaii trip in, on, or around the water. Whether you want to go surfing, snorkeling, scuba diving, or swimming, you enjoy having the option of doing so at just about any point in time.

Perhaps, the only con or downside to renting an Oahu beachfront vacation home is the cost of doing so. As previously stated, many pay for beautiful beach views, as well as easy beach access. Although the price of a beachfront Oahu vacation home will be higher than those located inland, you may find the cost well worth it. Many Hawaii travelers have reported that the costs were more than worth the experiences they received.

As outlined above, there are a number of pros and cons to renting both beachfront Oahu vacation homes and inland vacation homes. If you have the time to do so, you may want to examine both of your options. Comparison is the best way to find the Oahu vacation home that is best for you and your vacation needs.

My new home is through rent to own:

You too can get a new home using rent to own method. Rent to own is a very familiar term that has been used for several years. It is a familiar term in the real estate services. [While it is used in the real estate it is also used among ventures that rent assets]

To own a property you cannot afford financially you can arrange for a rent to own contract. This contract is between a seller and a renter who is willing to rent the property with the agreement to buy the property eventually. While he rent the property he pays rent. However his rent may be structured as a rent as well as installment payment to own the house in the nearest future mostly specified period.

Mostly this kind of bargain is more popular during economic crunch. Or during the housing market downturns, this is because the sellers may need finances. Landlord may use this method to find good buyers. The down payment may be agreed on to be credit payment. The seller may also demand a chunk for the down payment.

The benefits of a rent to own method to you

Now with rent to own, you can have time to build your finances to attain your dream home.

You can also have the chance to leave in the neighborhood you desired. This is enough impetus to drive you to focus on out-right purchase of your home

You can also benefit from the capital appreciation that arises from years of ownership, only this time you will reap the benefit rather than the seller. Since you have once locked the sale price to your advantage.

Also, you have one time rent-fixed for a long time. So when landlords are increasing their rents you are substantially covered from such increment.

My parents on the other hand, can’t even hear about me renting an apartment and at least once a week they give me the “money down the drain” speech. But what should I do? In this economic climate, when people are loosing jobs and getting into debt no honest man can pay, how can you even think about buying a home?

Why Rent?

Because you barely know how to pay your electric bill. Not all of us are great money handlers and for some people, all the paper work and legal formalities can be a pain. Because you can barely unclog the toilet. When you buy a home, all the maintenance work is on you. Something goes wrong with the pipes and you have to fix it or call a pro and pay for it. Because you don’t really have money for laundry, not to mention downpayment. There is a large initial investment to put on house. Something happens? Neighborhood isn’t what it used to be? When the lease is over you can just pack your bags and move. Rent stabilized apartments. The real winners will always be the ones who still pay 500 bucks on 4 bedroom apartment on the upper west side.

Why Buy?

Because you waste too much money on pizza. If you don’t really know how to save your money, paying a mortgage is like investing money in a savings account. If you pay on time and make extra payments, your interest rate will be lower and you will end up paying less. Because the monthly payments will actually get you something. When you rent, the monthly payments will actually get your landlord a new BMW. No surprises. No rent hikes. And you can’t be thrown out. Your taxes will look better with all kinds of advantages and incentives. When renting, your landlord gets all the goody tax breaks and you get rats. You can do whatever you want to your house. Remodel, paint, or put in a swimming pool. You’ll have something to leave to your kids (And we’re not talking about that PSP).

Are you ready to commit? First thing you should do is choose the best area for you. Then, pick an agent you can trust and remember that a reliable agent can often help you find a good source of financing.

If you are looking to buy or sell a home in the Five Towns area and you need a reliable real estate agency, you should probably know that since 2007, Five Towns Miller Realty has been involved in more real estate transactions in the area than any other realtor. Serving Cedarhurst, Lawrence and Woodmere with pride, Five Towns Miller Realty helps families get the best deals on their home, condo or co-op. When you need a Nassau County home choose a realtor you can trust, hop online and visit www.fivetownsrealtor.com today.

When you’re facing a home reposession, selling a home fast can be the answer to the financial dilemma confronting you. But what about the emotional trauma of having to leave the family home? You worry about leaving familiar friends and neighbors, finding a new place, learning your way around. It’s even more traumatic if you’re dealing with a life situation, such as bereavement or divorce, on top of everything else.

That’s where the real estate professionals at Quick-House-Sales.com come in. They understand the strain reposession puts on a person. That’s why the “rent back” option was developed to aid both sellers and buyers.

Here’s how it works:

Using the “rent back” option means you sell your home to a buyer who agrees to rent the home back to you. In addition, the buyer also agrees to allow you eventually to buy the house back. Plus both seller and buyer gains two advantages by working with Quick-House-Sales.com: no extra costs to the sale, and free evaluation of the property’s value. This applies to commercial properties, flats, detached and semi-detached houses, terrace houses and more.

Let’s look at how this arrangement works to the benefit of both seller and buyer.

First – and most important to the seller – the “rent back” option provides an immediate home sale that relieves the seller’s financial situation. The mortgage on a home becomes the buyer’s responsibility. In many cases the original lender is paid off, so that the buyer owns the home free and clear. By renting the property back to the original owner, the buyer gets rental income from the home. Plus, the buyer now has an additional asset credited to his or her personal wealth.

In the longer term, the buyer now has an eager, motivated future buyer willing to purchase the property back when their financial situation improves.

Meanwhile, the seller gains as well. In addition to the financial relief from the home sale, “rent back” allows the seller to remain in his or her cherished home. There’s no need to try to make a new home in an unfamiliar neighborhood. The seller keeps the emotional support of family and nearby friends while working the financial need. Finally, the seller knows that the buyer has agreed to allow him or her to buy back the property in the future when finances are better.

The rent back option through Quick-House-Sale.com has saved many homeowners from the trauma of a reposession. The company has a ready pool of cash investors willing to make home sales fast as investments. At the same time, Quick-House-Sales.com works to come up with attractive prices that benefit both the seller and the buyer in the transaction.

Quick-House-Sales.com also understands that the seller may be facing a deadline for home reposession. The company’s staff knows that reposession is both emotionally and financially traumatic, since a repossessed home often is sold at much below market value. That’s why the real estate professionals at Quick-House-Sales.com make every effort to sell houses fast at terms that preserve the home’s true value.

Buying or selling, a rent back house sale goes more smoothly when the professionals at Quick-House-Sales.com handle the negotiation. The buyer gets a fine investment property, while the seller gets out from under their financial woes without having to disrupt their lives.

Apartment complex’s and property managers tend to use fix policies and a structured outline in their guidelines to determine acceptance just to rent or lease from them.  Your credit report plays first priority in their decision.  So if you know your credit is bad, you should avoid the hassle and disappointment in trying to rent through them.

The one thing the foreclosure crisis has done was create more independent property investors who are the actual home owner.  Their main concern is simply that you can afford to pay the rent…PERIOD.   Most of them will also what to see your credit report to determine your creditability to pay.  But they tend to be more flexible and understand to hardship and life changes.  After all, they did just get the “deal of the day” by you losing your home and their gain at a fraction of the cost.

So now, personality and presentation takes center stage.  You must make sure that you meet with the owner or someone who represents the owner who will make the final decision.  Keep in mind, if you meet with a real estate agent who represents the owner, they will look at this like a property manager.  But it won’t hurt to try.

Here are 5 steps you need to take when your express interest in a rental.  Remember, before you look at the property you must BE PREPARED.

1.  Have an application already completed in advance. Most applications are the same.  You can go online and print one out or you can find them at a local stationary store.  This shows the owner that you are serious and ready to express your interest in applying for the rental property.

2.  Have a copy of your most recent credit report available.  You can simply go online and order a copy of your report.  Most landlords will charge a fee to pull the report and they still may even with you providing a copy.  But, this gives you the opportunity to show your credit history to them in advance and discuss the issues you have with your credit.  It also shows that you are being upfront and honest about your situation.  So, if credit is the most important thing to them, this process will save you the expense of paying for a credit report that would ultimately be rejected.

3.  Write a letter of explanation.  Explain any and all derogatory marks on the report.  This again allows you to put your issues in writing explaining why your credit is bad and make the letter part of your credit record.

4.  Make a copy of the following items:

    a)A copy of your driver’s license.  This proves you are who you say you are.               now, it’s always part of an application process.

    b)Have a copy of your (2) most recent pay stubs.  This proves that you are  currently employed and it verifies how much you make.  Typically, making 3x the amount of the rent is a big plus.

    c)Have a copy of your most rent W2.  This gives them a better look at your annual income and that you have had steady employment.

    d)Have a copy of your most recent bank statement or asset account statements.  This will let them know that you have the money for the deposit, the first months rent and possibly 1 or 2 months in reserves.  Money will always speak for itself.  The more you can show you have the better your odds can be.  *in some cases, they may want to increase your deposit and this will show that you have the funds.

5.  Make a list of 3 – 5 references.  Provide the names and phone numbers of at least 3 to 5 people who can verify your character.  This can be a friend, family members, co-workers, or someone who may be a creditor.  This simply adds strength to your application package.

Eight out of ten time, you will find that the homeowner is impressed with how prepared you are at the time of viewing the property.  And it is the rapport that you build with them that’s most important.  You can gain trust by setting a foundation for a great rental relationship.

There are many different website that list homes for rent by the owners.  Also use your local newspapers, community bulletins, etc.  You many find that this is a very simple process.   Not providing a credit report and trying to find someone who won’t ask for one can be time consuming and stressful to say the least.   Know what’s on your credit report so that you can start to make the necessary adjustment and corrections to improve your credit profile so that you can ultimately get back to prime status.

Sometimes it helps to have a consultant represent you if you need to go through this process.  A consultant can screen the home owners, advise them of your situation in advance and set up many appointments for you to view properties that you would likely qualify for even under your circumstances.  This will help you to avoid a mountain of rejection and keep a piece of mind by working with one person who truly understands your situation.

Although times have change, the game remains the same. People will always and forever have bad credit.  And they will always have to pay more for what they want unless they make a change in there financial situation.

The Villa Group – evab411@gmail.com  http://TalkinReal2URealEstate.blogspot.com