Expert: Lisa Webber - 1/11/2008

Question
I am considering going into a contract to rent to own, my rent will be 850.00 a month, after looking at the home I notice that the flooring is stick on tile in the kitchen and old and couple of cracked window, is that my responsibility to repair or replace? and is my total monthly rent going to be used as a down payment?

Answer
Each of these items is something you are going to want to negotiate with your landlord/potential seller.  You need to have a written contract spelling out all of the details including how much of the rent will go towards the downpayment, repairs, etc.  Some people will take half of your rent towards the downpayment, others will offer only part of it.  I have not seen a situation where they will take the entire amount, but you could ask.  The worst they are going to do is say no.  If you want the flooring replaced and the windows fixed, ask for that as well.  I would recommend a home inspection as well by a good home inspector.  The reason for this is you would want to know the condition of the roof and about how much life it has left.  If the roof will need to be replaced in the next year or two, that will cost you thousands of dollars.  The inspector will check other things in the house as well like the furnace, air conditioning, water heater, appliances, etc.  This will give you an idea of what needs to be done.  If the high dollar items need to be replaced while you are there, the landlord will be responsible in most cases, but if you have already purchased the home, you'll be responsible.  I would be concerned that if you are looking at the house and it has obvious items that need to be taken care of, how well has the rest of the house been maintained?  Just some things to think about.  Remember, ask for more than you think you'll get and then you can negotiate down, but once you come to an agreement, it's much harder to get anything else.  Good luck to you!