Archive for the ‘Renting’ Category

Everyone needs a place to live. Traditionally, here in Australia, that statement has meant that you simply had one of two choices – rent a place or own one. However, there is now a third option available to you known as rent to own.

What is rent to own?

Typically you either own your home, or at least pay a mortgage payment on it each month as you are paying off your loan from the bank, or you pay your landlord rent on their property that they themselves own. In the first scenario, you eventually own your home free and clear from the bank. Additionally, as each month passes you gain equity, in the form of money, in your property and should you decide to sell it at a later date you walk away with that cash. In the second scenario, you are simply paying rent to allow you to live in the home from month to month. When you are renting you do not gain any equity or interest in the property whatsoever. And, when you choose to move out you have no equity you can cash out and take with you.

In a rent to own scenario you are renting property from the owner, but you are doing so with a portion of your monthly rental payment going towards your down payment on eventually buying the property. Typically, the amount of your down payment credit in a rent to own situation is about 20%-30%. This means that if you pay $1000 per month in rent, then $200-$300 of your payment each month is a credit for your down payment. Using these numbers as an example, then in a year’s time you would then have $2,400-$3,600 towards your down payment, which you would not have if you were simply renting. The rent to own credit continues to accrue each month and so you could easily have a nice sized down payment in even just two to three years in this scenario.

Who can take advantage of a rent to own scenario?

The option of renting to own can be taken advantage of by people in a variety of different situations. Perhaps you have less than stellar credit, but you want to own your own home rather than keep throwing your money away in rent each month. Perhaps you are moving for a work related reason and you think that you want to purchase a particular property but are not positive of the area. Perhaps, you just don’t have any liquid cash available for a down payment on the property you want to purchase. There are many situations where rent to own makes sense for you as a real estate buyer.

Can someone with bad credit buy a home through the rent to own process?

Many people get into debt with credit cards, or find themselves in over their heads financially for one reason or another. Traditionally, this has meant that they are unable to purchase a home because they are unable to secure a mortgage from a lender. In a rent to own situation, you do not have to secure a mortgage right away and can take some time correcting your negative credit issues while still building up a down payment at the same time.

The reality of life today is that it is hard to get ahead, and it is hard to pay your rent and save for a down payment to purchase a home at the same time. The good news is that renting to own allows you the option of a place to live and the ability to use part of your monthly rent payment towards your down payment all at the same time; rather than tossing away your money in rent each month. You are paying for your place to live and you are building a nice credit for that down payment a lender is going to require in order to lend to you.

P. Sharp is a real estate specialist and has spent years and years helping families in Australia find their dream homes and, more importantly, actually own them. Thus far, he’s found the rent to own scheme the best way to own a home without greatly impacting a family’s finances.

New families can begin searching for their dream home by looking at the properties listed on his website http://www.ownyourhome.com.au/properties.aspx.

Author: P. Sharp
Article Source: EzineArticles.com
Provided by: Netbook, Tablets and Mobile Computing

The rent laws in Malta dissect Maltese tenants into two categories: those who contracted their lease prior to 1995 and those who signed their lease contract after 1995. Contracts entered into after 1995 are regulated by the Civil Code, the ordinary civil law of the land, whereas tenants whose commencement of lease dates back before 1995 are regulated by the ‘Special Laws’, in this case, Chapter 69 of the Laws of Malta.

These special laws were primarily promulgated to protect the tenant from eviction and from arbitrary increase of the yearly rent. Chapter 69 extends such protection. It practically freezes the annual rent payable by the tenant and limits the landlord’s power of negotiation with his tenant and his power to evict.

Chapter 69 of the Laws of Malta applies both to dwelling houses and to shops. It defines a tenant as extending to his or her husband or wife and also to family members residing with the tenant at the moment of his death if such tenant had no husband or wife.

According to this special law, it is unlawful for the lessor, or the landlord, to refuse to renew a contract of lease which terminates or expires. This law also states that the lessor, upon such expiration, cannot raise the rent or impose new conditions.

Situations and circumstances involving these protected leases are generally regulated by the Rent Regulation Board. This Board, which has the composition and function of a tribunal or a court of law, is empowered to grant permission of eviction or to increase the rent in very specified cases dictated by this special law. However, this power is also quite limited. The Rent Regulation Board can grant increase in rent if certain works to the property must be carried out, or if the rent does not exceed 40% of the fair rent. This fair rent is fixed by means of a valuation of the premises based on the rent at which such premises could have been leased ‘at any time prior to the 4th of August 1914′. The fair rent is thus based on what the premises would have leased for more than 80 years ago!

In Malta, many townhouses, found especially in the core of the villages, and which have been leased for over twenty years, are rented for Lm20 Eu46.59) per annum, Lm25 (Eu58.23) per annum and even Lm6 (Eu13.98) per annum! This special law also states that where the proposed increase in rent is to exceed Lm40 (Eu93.17) per annum, the landlord must give notice to the lessee by means of a judicial letter and the tenant has the right to contest it before the tribunal.

The state of many of these leased dwellings is piteous, to say the least. Landlords refuse to carry out and pay for any extraordinary or even maintenance works arguing that the rent would not cover a speckle of the payment for the works required. Tenants argue that they are not the owners and that it is not their responsibility to pay for such works.

In what circumstances is a landlord lawfully permitted to evict his tenant?
Chapter 69 of the Laws of Malta states that the Rent Regulation Board may grant permission to the landlord to evict the tenant if the latter fails to pay the rent twice consecutively. However, even if the tenant fails to pay, unless the landlord files a court application wherein he demands payment within 15 days, such failure to pay will not hold any water before the tribunal. Thus, the tenant must fail to pay in two consecutive instances and in both these two instances the landlord must have filed two court applications before the tribunal.

Another instance in which the Board may permit a landlord to evict the tenant is when the tenant requires the property for his own occupation or that of his ascendants or descendants. In this case, the Board must be satisfied that the tenant has alternative accommodation which is reasonably suitable to the means of the tenant.

The protection of these rent laws was halted by means of the promulgation of Chapter 158 of the laws of Malta which states that such protection will no longer be granted to lease contracts entered into after 1995. However, although the new leases being contracted presently give equal rights to tenants and landlords, the old rent laws still apply to the majority of leases in Malta. The majority of leases in Malta are very old leases, inherited from one generation to the other and thus the effects of such leases are still very much alive and very much felt. As a consequence, certain heritage town houses which could be restored to their old splendour, have been neglected and abandoned for many many years and there does not seem to be any solution to this problem unless the rights of both the tenants and the landlords are safeguarded.

Author: Natasha Buontempo
Article Source: EzineArticles.com
Provided by: Import duty tariff

1. Timing is Crucial

The housing market is very competitive, especially for those hard-to-find affordable apartments. Be prepared to make decisions quickly since it is not unusual for units to turnover in a single day. Start your search no earlier than four weeks before your desired move-in date and be flexible by a week or two with your plans. Make apartment hunting your life for two or three weeks – that should be enough time to get familiar with the market and what you are looking for.

2. Focus Your Search According to Your Budget

New York City is an expensive housing market and you will likely be forced to make compromises in your choice. Monthly rents will vary depending on several factors; the most important of which is location, followed by apartment size and then amenities.

Consider Where You Can Afford to Live – Manhattan apartments are in the greatest demand and consequently rents are the highest here compared to other boroughs or nearby suburbs. In most areas of Manhattan, you will have great difficulty finding a studio apartment for less than $1,400-1,500 per month. In contrast, there are areas just outside Manhattan (within a 30-40 minute commute) where you can find a decent studio apartment to rent for $850-1,000 per month.

Determine What Size Apartment Fits Your Budget and What Amenities You Can Do Without – Squeezing into a smaller apartment than your ideal and a willingness to accept some commonly perceived flaws such as lack of view or natural light, street noise, etc., may save you some money. In addition, rents will vary with the type of building in which the apartment is located such as, whether or not the building has a doorman or an elevator.

Decide If You Are Willing To Share An Apartment – You can sometimes cut costs by sharing a large one bedroom, where you can build a wall in the living room to create a second bedroom for your roommate (management allowing, of course).

3. Methods of Searching – Fee v. No Fee Rentals

If you can afford to pay a broker’s fee, searching with a broker is highly recommended for convenience and is the most common way of finding an apartment. Brokers often have access to good rental options, can guide you in your search, and make the paperwork easy for you.

Brokers charge a commission for their services. In Manhattan, expect to pay between 12-18% of the year’s rent, typically 15% of the year’s rent as a commission. That means if your rent is $1,000 a month, the broker’s fee works out to $1,000 x 12 x 15%, or $1,800. Fees outside of Manhattan are usually less, ranging from one month’s rent to 12% of the year’s rent. The fee is payable only at the time of lease signing.

The larger Real Estate firms have Web sites where you can search their listings in advance of contacting them. You can also check their most updated listings in the classified ads in The Village Voice, The New York Times.

4. Financial Requirements and What to Bring on Your Apartment Search

In order to rent an apartment, you will be asked to complete an application form by your prospective landlord. You may also be required to pay between $50-$200 for credit reports and / or application fees. Landlords are mainly concerned with you and / or your guarantor having steady income and good credit.

Financial Requirements – Most landlords require that the prospective tenant have an income equal to 40-45 times the monthly rent in annual salary (combined income is used for roommates). You and your roommate will need to have all of your income verification paperwork readily available upon application for an apartment.

If you are a full time student or do not meet all the financial requirements, most landlords will require a lease co-signer or guarantor. A guarantor is an individual, typically a family member, who preferably lives in New York, New Jersey, or Connecticut. Guarantors are asked to disclose detailed financial information and have a credit report run on them as part of the approval process. The guarantor’s income needs to be at least 75 times the monthly rent and they will also need to submit the paperwork listed below.

Funds – When the landlord approves your apartment application, be prepared to pay the first month’s rent and the security deposit upon lease signing. Most landlords require that these funds be paid in the form of separate certified checks or money orders. Landlords will not accept personal checks or credit cards. An additional certified check or money order will be required at the time of lease signing to pay the broker’s fee.

Necessary Documents – Bring the following items with you when you start looking for apartments:

* Letter from your current employer stating your salary or from CPA if freelance or business owner

* First two pages of last year’s tax return

* Most recent bank statement(s), bank account numbers and credit card numbers

* Most recent pay stub(s), names, addresses and phone numbers of previous landlords

* Names, addresses and phone numbers of personal and business references

* Photo I.D. such as driver’s license or passport

5. Lease Signing

Leases are important for clarification of the responsibilities of the landlord and tenant. If you don’t have a lease, the landlord could ask you to leave or raise your rent on short notice. In addition, factors such as when your rent is due, if pets are allowed and who is responsible for maintenance need to be clear. The type of lease you will be asked to sign can vary with the type of apartment and building in which it is located. Any changes to the standard lease are usually included in a separate lease rider. Leases are for one or two years and generally begin on the 1stth or the 15 of the month.

Typically, the apartment will be located in a rental building that is owned by a landlord and all of the apartments are available for lease. These buildings may be protected by rent regulations. A rent regulated apartment is subject to limits on the amount that owners can raise the rent for vacant apartments and renewals of existing leases. A tenant in a rent regulated apartment has the right to renew the lease indefinitely and the right to sublease the apartment with the landlord’s permission. For more information about rent regulated apartments, visit the New York State Division of Housing and Community Renewal (DHCR). Non regulated apartments are known as market rate. They are easier to find and more expensive than rent regulated apartments.

Taisia Shell is a licensed real estate broker in Manhattan with 27 agents brokerage firm. If you would like to find more about real estate in New York visit her website http://www.anshell.com

Author: Taisia Shell
Article Source: EzineArticles.com
Provided by: Gadget reviews

Rent to own is a great option for home buyers who do not qualify for a traditional mortgage. You may not have the money for a down payment on a mortgage, or perhaps your credit score is too low to qualify for a bank financed mortgage. If either of these are the case, it is good to know that there are still options for owning your own home.

What You Will Pay

To get into a rent to own home, you will generally need to put down a deposit. The deposit is usually a percentage of the overall price of the house, and it should go toward your final purchase of the house. While traditional mortgages often call for up to 20% down, rent to own homes generally ask for a smaller, more affordable deposit.

What you pay monthly will be determined by your deal with the seller. You will need to pay the rent, which is just like a traditional rent. On top of that, you may structure a payment or a portion of the rent to go toward your premium. The premium is the amount you still owe on the home, after your deposit is taken into account. Unlike a traditional mortgage, you rent payments do not count toward the purchase price of the home. You will pay down the final cost of the house be making an extra premium payment every month.

How Long Will You Rent

The length of time you will rent will be determined by your contract with the seller and your own situation. Usually, the rent to own portion only lasts 1 to 3 years, at which point you will be able to buy the house for the price you agreed on in the contract.

At the end of the contract, you will have paid some money toward the final price of the house. You will be in a much better position to buy the house outright using a traditional mortgage. Some sellers will even help you build your credit back up and secure a mortgage.

If at the end of the contract you are not able to secure a mortgage or purchase the house outright, you may be able to renegotiate with the seller. Be sure to plan ahead and learn about your options before you sign the initial contract. You will usually be putting your deposit at risk if you do not end up buying the house at the end of the contract.

What If You Aren’t Sure You Can Buy

In some cases, you may be unsure whether you will be able to secure a mortgage and buy the home at the end of the contract. An alternative option that you may want to consider is a Lease Option contract. That is a contract that basically sets you up to rent the house with an option to buy it at an agreed upon price after a certain amount of time. You are not bound to buy the house at that time, but you may still have to waive any deposits. The nice thing is you will not have to renegotiate if you want to move on. A lease option is very similar to leasing a car with an option to buy it or turn it in at the end of the lease.

Is It Right For You

Determining whether rent to own is right for you should take several things into account. First of all, why can’t you qualify for a traditional mortgage? If you have a temporary credit problem, renting to own may give you the cushion you need to repair your credit. However, if you have chronic credit problems, maybe you need to work on repair and maintaining good credit before thinking of buying a house. Likewise, if you do not have enough money for a traditional down payment, you need to ask yourself why. Run the numbers and figure out if renting to own will help you save money, and also figure out if you can create a budget to set aside some income. You will still need to put a deposit down for a rent to own house, but the nice thing is you will not have to save up as much.

Rent to own may in fact be a great solution for you. It could help you get out of the rental cycle and start you on your way to home ownership. This is especially true if you have a premium payment figured in to your rent that will go toward the final purchase price of the home. This means some of the monthly bill you are paying will now be applied toward owning your own home.

Finding Rent to Own Houses

Finding a house that you can rent to own can take a little work. Usually, real estate agents are only interested in selling homes outright, since they collect a commission on the sale.

When a seller rents you a house to buy in the future, he or she is giving up some of the immediate cash of the purchase and trusting you to make your payments and buy the house in the future. Most people who are selling their homes will not be willing to do this. Your best bet is to work with a house investor. This is a person or company that buys and sells houses.

You can find investors by searching house for sale listings, looking at for sale by owner houses, and searching online on Google and Craigslist. If you see listings in the paper or on signs for people who buy houses, usually with some form of We Buy Houses slogan, these are usually investors who also sell houses through various means, including rent to own.

An investor may have a house for sale that is perfect for you. If not, he or she may be willing to look for a house that fits your needs, buy it, and then set you up with a rent to own contract. If you find the right person to work with, you will have a great experience and be well on your way to owning your own home!

This article is by Bradford Shimp. To learn more about this subject, please visit http://bornagainhouses.com

Author: Bradford Shimp
Article Source: EzineArticles.com
Provided by: Digital Camera News

What are the advantages of acquiring your furniture, appliances, and other durable household needs from a rent-to-own store such as Rent-a-Center, as opposed to buying them on credit? There are many good reasons why rent-to-own is the best option for the smart consumer. For one thing, with rent-to-own you don’t incur any debt or long term obligation. This means there is no credit check required – all you need to show is a residence and source of income.

You can terminate the agreement whenever you want to, for whatever reason and even after terminating you can pick up the agreement at a later date when you are again financially secure, exactly where you left it- there is no loss of equity. Rent-to-own enables you to obtain new, famous brand-name merchandise for a low weekly payment; and you can even schedule biweekly or monthly payment plans if this is more convenient. The rent-to-home store delivers and sets up the item at no extra charge; and it will fix or service it during the entire rent-to-own payment period, even extending you a free temporary loaner if the item has to be brought in for service (pick up and delivery of serviced items is also free).

Who benefits most from rent-to-own furniture such as that offered by Easyhome rent to own? Most rent-to-own customers are working-class families who live on a weekly paycheck. Customers are typically on a budget, and have an immediate need for durable household goods, but not the wherewithal or willingness to take on long-term debt obligations. Often customers do not have access to credit: about 13% of rent-to-own customers are under 25 years old; another 7% are over 55. About half of rent-to-own customers have incomes less than $36,000 per year; and about half own their own homes. The typical rent-to-own store serves about 360 customers yearly, and produces a revenue of over $700,000. There are presently around 9,000 rent-to-own stores operating, serving a total of three million customers each year.

What rent-to-own products are most popular? Furniture accounts for 40% of rent-to-own and electronics and appliances account for another 44%. Computers account for 11%, and jewelry 1%. One of the newest and fastest growing segments of the rent-to-own industry is the custom wheel and tire store, typified by Rent n Go rent to own. The typical rent-to-own wheel and tire store sells over $700,000 in products yearly. The main drawback for rent-to-own operators is the fact that their operating costs are higher than those of traditional retail businesses, due to the fact that ultimately the merchandise is returned; and also due to the maintenance and replacement costs during the payment period.

Author: Alice Lane
Article Source: EzineArticles.com
Provided by: PCB Prototype & Manufacturing

If you are considering buying a property in Spain to rent, there are a number of things that you should be aware of before jumping straight in. Done correctly, renting a property either long-term or short-term can have some excellent financial benefits. However, if you rush into it then you could find your Spanish renting dream turning sour very soon.

Why Rent In Spain? There are various reasons why you might want to rent a property in Spain. Spain’s enormous tourist industry and year-round sunshine makes it the perfect destination for renting out a short-let holiday home to holidaymakers, as there is the potential to get tenants throughout the year and make the best of your investment. However, you may simply want to rent the property out to tourists during the summer months and live in it for the rest of the year. Whatever purpose you have for renting a property, make sure that you are fully prepared.

Long Term And Short Term If you are considering a long-term rent for your property then this is known as a vivienda. This lasts for a minimum of a year, and the rent will be cheaper as a result. Vivienda contracts can be renewed for up to five years, and you will not be able to increase the rent during this time by anything higher than the rate of inflation. Short-term rents are known as temporadas, and these are generally for holiday lets. However, a temporada can technically last up to 11 months.

Get The Location Right The most important thing for any property that you are planning to rent is the location. Of course, the requirements of the location will depend to an extent upon the market that you wish to rent the property to.

If you are renting to the short-term tourist market, you will want to find a property that is located near to all the major amenities that tourists would require access to, such as supermarkets, restaurants and bars. A place near a beach or a golf course is sure to prove the most popular, and although this will be more expensive you will be able to charge higher rents as a result.

Managing The Property Yourself If you plan to manage the property yourself, you will need to find your own tenants, and the best way to do this is to spread the word. Tell your friends in your home country about it and maybe offer them a reduced rate, then they will tell their friends to help you keep it occupied for as many weeks as possible. The added benefits are that you will know your tenants, meaning you won’t have to worry about the trustworthiness of the people living in your house.

In addition to spreading the word amongst your contacts, you can also advertise in local papers and on internet advertising sites, both in your home country and in Spain.

You will be responsible for answering their questions, fixing anything that breaks and making sure that they are happy, which can create a lot of work. It is therefore only really possible if you live nearby the property.

Letting The Estate Agent Do It For You Alternatively, you can take the hassle out of your investment and leave your property in the capable hands of a holiday management company. This will allow you to live in your own country and not worry too much about the day-to-day running of the property, including collecting rent and making minor repairs.

All that you will have to do is collect the rent in your account, and you won’t have to worry about finding tenants as the company will probably have a much higher likelihood of finding them for you.

Of course, the drawbacks of this will involve less money for you – a typical fee could be up to 40% of the rent plus maintenance costs – and the fact that you will not have much control over the tenants. You will also have to choose your management company carefully, so make sure you look around before making your choice.

Check The Contract Whether you are using the services of a company or you are managing the property yourself, make sure that you have a good contract in place for the tenancy agreement. It is a good idea to hire a property lawyer to write this up for you, which will be an added expense but will be well worth it should any problems arise. You should include a clause whereby a penalty must be paid if they leave within the first year, and you should also require a couple of months’ notice if they decide to leave after the initial contract period.

Deposits, References and Tax As you can never be entirely sure about the person living in your property, make sure that you get a deposit to cover any damages that may arise. It is also a good idea to ask for references and to even run a credit check, especially if they are going to be renting long-term.

Whether you are renting long-term or short-term, you will have to pay tax on your rental income. This is currently 25%, and in the case of long-term rents the responsibility for payment comes down to the tenant, who will take it out of the rent and pay you the rest. You should therefore get proof of payment from the tenant to avoid any problems.

Author: Robert Griggs
Article Source: EzineArticles.com
Provided by: Canada duty rate