Are you one of those who look up the web for “how to rent homes for me in Ottawa?” more often than not? Rent-to-own contracts in Ontario enable tenants to lease a property with the choice to buy it at a future date. A rent-to-own agreement—alternatively referred to as a lease-option or lease-to-own agreement—is a contract between a landlord or a landlady and a tenant that allows the latter to rent a property before purchasing it.
A typical rent-to-own agreement describes the rental conditions, the monthly rental fee, and the length of the lease. The tenant has the right to purchase the property at an agreed-upon sale price in a predefined amount of time. However, in Ontario, rent-to-own agreements fall under the jurisdiction of the Residential Tenancies Act (RTA).
What to Expect When It Comes to a Rent-to-Own Contract?
All rent-to-own agreements must be in writing and duly signed by both parties. It is for your protection and peace of mind so that nothing is left by assumption!
Disclosure of Information
Are you blissfully clueless about how to search the World Wide Web for “how to rent homes for me in Ottawa?” Before engaging in rent-to-own agreements, some information—as mandated by the RTA—must be provided by landlords or landladies. This must include the current market value of the property, any outstanding mortgages or liens, and any other relevant information that may impact the tenant’s decision to purchase the property.
Rent-to-Own Provisions
Rent-to-own agreements are highly unlikely to include the phrase “To rent homes for me in Ottawa—or not to—that is the question!” However, they must mention your rent amount, how long you are going to occupy the property in question, whether you are allowed to purchase it or not, and more.
Security Deposits
In Ontario, a landlord or a landlady cannot charge a security deposit for a rent-to-own deal. However, they may charge a key deposit, which must not exceed fifty dollars.
Rent Increases
The RTA regulates how much landlords or landladies can charge rent in a rent-to-own agreement.
Maintenance and Repairs
The RTA places the responsibility for maintaining the property and carrying out repairs with landlords or landladies. To suffice, now you do not need to run from pillar to post asking people, “How to rent homes for me in Ottawa in the shortest possible time without spending a fortune?”
Apart from tenants, rent-to-own agreements may also benefit landlords or landladies. For the latter, it represents a reliable revenue source. One also has the liberty to liquidate their property at a guaranteed price at some point in the future. However, for the former, this means they can move into a home they want. In addition, they continue saving to buy it one day while working on their credit score.
In addition, rent-to-own contracts can be a viable alternative for tenants who may not be eligible for a traditional mortgage because of their credit score or inability to put cash down. It allows them to clean up their financials and qualify for a mortgage later on. You may call us at Helping Homes to schedule a consultation!
