HOME OWNERSHIP PROGRAMSBENEFITS OF HOME OWNERSHIP
AVAILABLE HOUSING PROGRAMSTRADITIONAL RENT OR LEASE Traditionally, many people get their start as rental tenants. Generally, tenancies under a year in duration are called "rentals" and those a year or more in duration are called "leases." The advantage of a lease is the terms are locked in for the lease period and the landlord can only change them at lease renewal. When you are a rental tenant, the landlord can generally change the terms any time he wishes by simply giving you thirty day's notice. Clearly, then, leases are the better choice for tenants--so insist on a lease whenever you can. Generally, the landlord will ask you to fill out an application so he can check out your background. An application fee is customary since he has to pay fees to verify the information you provide. Once you pass the application review, you need to post your security deposit and the first month's rent. Generally, the security deposit is the same as the rent. When you move out, if you have furnished your landlord with 30 days notice in writing and given him your new address, he will send the security deposit less any deductions allowed by Ohio law to that address within thirty days after you move out. However, if you do not give the required written notice, the landlord is NOT required to refund the deposit to you. You should ask the landlord to sign a copy of the notice and retain the signed copy until you get your refund, if any. The landlord must give you a written explanation of any security deposit deductions, as well. TIP: You should have made arrangements to have the full security deposit and first month's rent ready before you start looking for your new rental home. Most landlords will not approve your application if you are unable to post the deposit and pay the move-in rent. Not only that, you'd be out the non-refundable application fee as well! Now that you've posted the deposit and paid the rent, you are entitled to possession of the home and can move in. There are two really important responsibilities you need to be aware. First, nearly all of your rights as a tenant depend on prompt and timely payment of rent. Here's why. If you are even a day late, your landlord has the right to begin the eviction process. You'll know your landlord has started the process because he will either hand you a Three Day Notice or post one on your front door. This notice means that after three days, he intends to file an eviction complaint (the technical term is Forcible Entry and Detainer) in the local Court. Once the landlord has started the eviction process, your tenant rights mostly end. The Court will schedule a hearing approximately ten days later to give you an opportunity to prove that you've paid your rent in full. If you haven't, the Court will order you to pack up your belongings and leave right away. If you haven't left within ten days, the Court's Bailiff will come and supervise your set out. This is not good. The other responsibility is that the law holds you responsible for any damages you cause to the landlord's property while it is in your care. Not only will those damages be deducted from your security deposit, he may also pursue legal action as well. This is really not good at all. The take away from this is that so long as you take care of your responsibilites, you have the right to occupy the dwelling during the term of the rental agreement or lease. This, in a nutshell, is the traditional arrangement. HUD SECTION 8 LEASE Families whose income falls below Federal guidelines may obtain assistance through the local public housing agency. The following table outlines the eligibility limits for 2007:
If your family income is below these limits, you may apply for Section 8 assistance through BMHA, WMHA, or MPHA. If you are accepted into the program, the government will pay a portion of your rent and utility expenses. Under the program, you get to choose your apartment or house so long as it meets the minimum standards set by HUD. This is a really great feature since it puts you in the driver's seat! The amount of the housing subsidy is the lesser of HUD payment standard less 30% of your monthly income -or- the gross rent less 30% of your monthly income. If the home you've chosen is more costly than the HUD payment standard, you can still lease it, but you'll have to pay the difference as well. TIP: Your best deal is to choose a home priced slightly over the HUD payment standard to get the most home for your money. Then negotiate with the landlord to get his price down to the standard. Many landlords will come down to HUD rates if you ask for them nicely. It works! It never hurts to ask. Remember that even though the government may pay a substantial portion of your housing expense, you must pay your portion on time every month or you may be evicted. If that happens, you may be ineligible for further assistance payments. You also have a duty to take care of your new home and will be responsible for any damages caused by your family and guests. As with nonsubsidized tenants, you will post a security deposit with the landlord. The deposit is no more than one month's full rent (that is, both the part you pay plus the subsidy). This deposit, less lawful deductions, will be refunded to you when you move out as described above. RENT TO OWN RENT TO OWN is like any other rent to own program. Along with your lease, you negotiate a firm commitment of a price to purchase the home at today's price in the market. Then, you can purchase it, IF YOU WANT, at a later date at that pre-specified price. Should the value of the property go up over time, YOU capture the profit. Sweet! Not only that, an agreed portion of your monthly rent will be set aside to count as part of your down payment. Double sweet! If the value of the property goes down over time (when has that ever happened?), you can simply elect not to exercise the option to cut your losses and the landlord gets stuck with it. The best part of RTO is that you really know the home and neighborhood you are investing in. There simply is no downside for you with an RTO deal--pretty shrewd! Because the landlord is giving up the right to sell the home during your tenancy, you'll either pay a non-refundable consideration up front for the option to purchase, or pay it out over time as increased monthly rent payments, or a combination of the two. TIP: Put as much down as you can up front and negotiate the lowest possible monthly payment to maximize your monthly cash flow. This will not only help you get your financing earlier but may save you big money on the mortgage rate. In the long run, you'll come out ahead. It's ok to bargain for your best deal--we expect it! The goal of our RTO program is for you to build up enough equity to entice a bank to extend a mortgage to you. We also know that when people are saving to buy the home, they take great pride in it and that's good for everybody! Fact is, many of our tenants have become satisfied home buyers with this marvelous program. You could be too. Why not go for it! LAND CONTRACT This is another way to purchase a property and where the owner plays the part of a bank. A LAND CONTRACT is an actual legal document that is sort of a cross between a deed and a mortgage and is filed for public record to protect your interest. It has the price, terms, payment amount, interest charged and other required language. Down payment on a LAND CONTRACT is negotiated. Normally we are looking for ten to twenty percent of the purchase price. Our Land Contract terms are usually a maximum of five years. During the LAND CONTRACT time period, we work with you to try to obtain conventional financing. Be aware, though, if you breach the terms of the contract, you can be evicted just as if you were a tenant--it is critical that you make those payments on time! COMMON QUESTIONS ABOUT OUR HOMES FOR SALEQ. CAN I CHANGE MY MIND AFTER I ENTER INTO AN AGREEMENT? A. On a rental, RENT TO OWN or LAND CONTRACT, you may. In most cases, you forfeit any down payment. Q. CAN I LOOK AT THESE HOUSES NOW? A: Generally, yes. Sometimes they are occupied and upon request from SERIOUS buyers, we can give the residents a 24 hour statutory notice and then show the home. Quality homes at affordable prices by Arts Rentals | ||||||||||||||||||||||||||||||||||||||||