Every Lease is a one-year term that automatically renews each year. However, if you decide not to renew, there are no penalties. You must give a 60-day notice prior to your Lease term end date. Your Security Deposit is returned in accordance with Lease terms.
The Security Deposit and signed Lease are due within two business days of going under contract on the home. Failure to do so will result in the termination of the contract and disqualify you from the Program. Security Deposit amounts vary by state.
Our Program is a unique version of a standard rental lease. We lock in monthly rent each year through your Lease expiration date or until you exercise your Right to Purchase.
Each year, the monthly rent increases by no more than 3.75% over the previous year’s monthly rent.
For example, if the monthly rent for Year 1 is $1,400, the increase for the next year is $50 per month (i.e., $1,400
x 1.0375). Rent wi l l round down to the nearest $10.
This is the price we pay for the acquisition of the home, which includes the Purchase Price, Closing Costs, HOA Transfer Fee (if any), Make-Ready Costs, and “Owner Work”. The total cost will determine Right to Purchase prices.
Purchase Price $200,000
Closing Costs* $3,000
Make-Ready & “Owner Work” $7,000
Total Cost $210,000
*Includes transfer taxes, attorneys’ fees, title insurance, other acquisition costs, etc.
Right to Purchase (RTP)
You can exercise your RTP anytime during the Lease so long as we are given a 60-day notice before your desired closing date. Each year, the RTP Price increases by 3%-5.5% (varies by market). If the total cost of the home is $210,000 and the RTP increases by 5% (i.e., prior year RTP x 1.05), then the RTP for years 1-5 is shown below. RTP price will round down to the nearest $100.
Year RTP price
Standard closing costs you will incur if you exercise your RTP include transfer taxes, title insurance, and the cost of a mortgage loan. The actual total costs to exercise the RTP will vary.