With a typical lease you go through the following process:
- Secure a Realtor to work with you.
- Review available homes for lease on the market.
- Make an application to lease a home.
- Pay an application fee, typically $50 per adult over 18, for each adult who will live in the leased property. (This does not mean you will lease the home – it is the fee you pay to be considered.
- Provide proof of identity and income.
- If your application is rejected, you start again at step 2.
- If your application is successful, you conclude a lease agreement with the landlord.
- You pay a security deposit which is typically between 1 to 2 months rent. If the rent is $1500, your security deposit is typically between $1500 and $3000. If credit is iffy, you can almost guarantee having to pay a security deposit equal to 2 months rent, if not more.
- You move in.
Typically the process takes up to 6 weeks for the complete process to be concluded.
Lease with an option to purchase is slightly different, but not much, and has some additional benefits.
- You will work with one of our realtors.
- You make an application to the landlord to see if you will qualify. There is a one time non-refundable application fee.
- If you are approved, you are authorized to review homes listed for sale to the approved value. If the landlord approves you to search for homes up to $450,000, then you can review any homes listed for sale at or below that value.
- Once you find a home you would like to lease, you complete an agreement with the landlord. The agreement will specify
- The amount you will lease the home for over the next 12 months.
- The amount you can lease the home in the second and third years if you choose,
- The amount you can purchase the home from the landlord for anytime in the following 3 years.
- Any repairs you request to the home.
- The landlord then purchases the home and makes the requested repairs.
- You move in.
The main differences are:
- You are first approved by the landlord and then the landlord purchases a home to lease to you.
- You have the first option, in the ensuing 3 years, to purchase the home from the landlord.