Rent to Own Deals - Questions to consider

For Sellers:
*Who will tend to the property and pay for routine maintenance?

*Who pays for major repairs?

*What are the costs of setting up and managing an escrow account for the portion of rent allotted to the down payment?

*Will you manage the property yourself, or hire an agent?

*What if the renters change their minds? Who keeps the money in the escrow account?

*If the buyers change their minds, what will be required to put the property back on the market?

For Buyers:
*How much of the rent is going to the down payment?

*How locked in are you if change your mind? What will it cost you to get out of the deal?

*How long will it take to accumulate enough of a down payment that you are likely to qualify for a mortgage?

*What happens if you don’t qualify for a mortgage by the specified deadline? Can you continue to rent?

*Who will be responsible for routine maintenance?

*Who will pay for major repairs?

*Do you hope to strengthen your credit rating by paying rent on time? If so, will the owner report your good habits to credit bureaus?

Source: Milwaukee Journal Sentinel, Joanne Cleaver (09/22/2007)