Rent-to-Own Lease Agreement

What type of rent-to-own agreement is this?

Option to Purchase - Tenant has the option to purchase the property.Lease Purchase - Tenant is obligated to purchase the property.

What is the purchase price?

The sales price that the tenant will pay for the property.

Is the tenant's ability to purchase conditional on financing?

Is the tenant's ability to purchase conditional on financing? YesNo

Which type of financing is this contingent on?

Which type of financing is this contingent on? Bank FinancingSeller Financing

Seller-Financing Terms

Down payment:

Loan Amount:

Interest Rate:

(per annum)

Loan Term:

The total length of time the borrower agrees to repay the loan, typically stated in months or years.

Amortization Period:

The time over which the loan is structured to be paid off. It’s often longer than the loan term to lower monthly payments while the tenant secures other financing.

When is the payment due?

day of each month

If payment is made late, will there be a penalty?

If payment is made late, will there be a penalty? YesNo

When is payment considered late?

day(s) after it is due.

What is the late payment fee?

Enter a flat fee ($) or a percentage (%) based on the past due amount.

Is there a balloon payment as part of the seller financing?

YesNo

A balloon payment is typical after 3 to 5 years, which allows the tenant to find traditional financing.

When is the balloon payment due?

after the loan commences.

Is there a prepayment penalty if the tenant pays the loan off early?

YesNo

What is the prepayment penalty?

A prepayment penalty is typically a fee equal to the percentage of the remaining balance on the loan.

When does the option period end?

At the end of the lease term.On a specific date.

When does this option to purchase the property expire?

Also known as the "option term," which is the timeframe the tenant has to convert the lease to a purchase agreement (NOT when the tenant must close on the property).

Is there an option fee?

YesNo, the lease shall act as consideration.

An option fee is a payment made by the tenant to the landlord in a rent-to-own lease agreement in exchange for the exclusive right to purchase the property.

What is the option fee amount?

Is the option fee refundable?

Is the option fee refundable? Yes, it is refundable.No, it is non-refundable.

If non-refundable is selected, the landlord will keep the option fee even if material defects are found on the property.

How long does the tenant have to INSPECT the property? (after giving notice to purchase)

Days

The inspection period is the timeframe the tenant has to check for property defects.

How long does the tenant have to CLOSE on the property? (after giving notice to purchase)

Days

This is how long the tenant has to complete the property purchase after giving notice.

Is there any personal property included in the sale?

YesNo

Such as furniture, appliances, etc.

Describe the personal property included in the sale:

What type of lease is this?

Standard Lease (fixed term)Month-to-Month Lease

When does the lease start?

Start Date

When does the lease end?

Move-out date.

Days' Notice

30 days is most common, but it can be any period as agreed by the landlord and tenant.

Which best describes the property?

Apartment

Single-Family Home

Condominium

Other (describe)

What is the type of property?

E.g., townhouse, cooperative, duplex, etc.

How many bedrooms?

Bedroom(s)

A bedroom is a private room for sleeping.

How many bathrooms?

Bathroom(s)

A half bathroom (0.5) has a toilet or shower/tub. A full bathroom (1.0) includes both.

What is the rental property address?

Street Address

Address Line 2

City

State

ZIP Code

Legal Description

Do you want to add a legal description?

Do you want to add a legal description? YesNo

Such as tax map/lot numbers, deed book/page numbers, etc.

Enter the legal description of the property:

What is the landlord's name?

A landlord is the owner or manager of the property.

Add the landlord's address?

YesNo, I'll add this later

Landlord's Address

Street Address

Address Line 2

City

State

ZIP Code

How many tenants?

Tenant(s)

A tenant is a person who rents and occupies property under this lease agreement.

Tenant's Name

2nd Tenant's Name

3rd Tenant's Name

4th Tenant's Name

5th Tenant's Name

6th Tenant's Name

7th Tenant's Name

8th Tenant's Name

9th Tenant's Name

10th Tenant's Name

Will the property address be used for notices to the tenant?

Yes (most common)No

If allowed, the landlord can give any type of written notice to the tenant by using the rental property address.

What will be the tenant's address for notices?

Street Address

Address Line 2

City

State

ZIP Code

Are there any occupants?

YesNo

An occupant is a person who lives in a residence but is not considered a tenant, commonly children or other family members.

Who are the occupants?

Is the property furnished?

YesNo

Such as beds, sofas, tables, chairs, etc.

Select the furnished areas:

Select the furnished areas: Bathroom(s) - (towels, rugs, shower curtains)Bedroom(s) (mattress, frame, nightstand)Dining room (dining table, chairs)Kitchen (cutlery, dishes, pots)Living room (sofa, table, TV, carpets)Other

Enter the furniture:

Does the property have appliances?

YesNo

Such as a refrigerator, oven, microwave, washer, dryer, etc.

Select appliances:

Select appliances: Air conditioner(s)DishwasherMicrowaveHeating unitsRefrigeratorSmoke/carbon monoxide detectorsStove/OvenWasher (laundry)Dryer (laundry)Other

Enter the appliances:

What is the monthly rent?

$/ month

When is rent due?

day of each month

Will any of the tenant's monthly rent amount be a rent credit?

YesNo

A rent credit is a portion of the monthly rent that is credited toward the property’s purchase price if the tenant decides to buy.

How much of the tenant's monthly rent will act as the rent credit?

$per month

Add the acceptable payment methods?

YesNo, I'll add this later

Select payment methods:

Select payment methods: ACH (electronic bank transfer)CashCheckPayPalVenmoZelleOther

What is the landlord's PayPal e-mail?

What is the landlord's Venmo e-mail or username?

What is the landlord's Zelle e-mail or phone number?

Write the acceptable payment methods:

Is a security deposit required?

YesNo

A security deposit is money a tenant pays to a landlord to cover potential damages or unpaid rent.

Is the security deposit equal to one month's rent?

Yes (most common)No

What is the security deposit amount?

When is the security deposit to be returned to the tenant?

The maximum allowable time period (required under law).Custom timeframe.

This refers to after the lease has terminated. The number of days the landlord has to return the security deposit back to the tenant (commonly is 30 days).

How many days must the security deposit be returned to the tenant?

days

30 days is the most common timeframe.

Is the tenant allowed to move-in before the start date?

YesNo

Even if the property is vacant, the tenant cannot move-in early unless permitted by the landlord.

When can the tenant move-in?

Will the tenant be required to pay pro-rated rent?

Will the tenant be required to pay pro-rated rent? YesNo

If a tenant is allowed to move-in early, it is common for the tenant to pay rent, in the pro-rated amount, for the length of the stay. This is calculated by getting the monthly rent and dividing by 30 days and using the per day amount ($/day) + the number of days the tenant is moving in early.

Example: Rent is $1,500/month. Divide by 30 days which is $50/day. If the tenant is allowed to move in 5 days early, it would be $250 in pro-rated rent.

What is the pro-rated rent amount?

Is the tenant required to prepay rent?

YesNo

This does not include the first month's rent. Prepaying rent is common for tenants who pose a higher financial risk.

What is the pre-payment rent amount?

Prepayment Period

Start Date

End Date

Is there a late fee? (if rent is not paid on time)

YesNo

It is common for a late fee to be charged if rent is not paid on time.

How is the late fee calculated?

How is the late fee calculated? Fixed Amount ($)Interest (%) on unpaid rent

What is the late fee amount?

Commonly a flat fee between $50 to $100 depending on the rent amount.

How is the late fee applied?

How is the late fee applied? One-timeFor each day rent is late.

What is the interest rate for the rent owed?

What is the interest rate for the rent owed? Maximum interest rate allowed under law.Custom rate (%)

What is the percentage?

Often between 5% to 10% of the rent amount.

Is there an NSF fee?

YesNo

A non-sufficient funds (NSF) fee is charged when the tenant pays with a dishonored check.

What is the NSF fee?

What is the NSF fee? Maximum amount allowed under law.Fixed amount ($)

What is the NSF fee?

Is parking provided?

YesNo

Select "yes" if parking is included in the rent or for an added fee.

How many parking spaces are provided?

parking space(s)

Does the landlord charge a parking fee?

YesNo

If the parking is included in the rent amount, there is no fee.

How much is the parking fee?

How is the fee paid?

How is the fee paid? One-time fee (paid at lease signing)Monthly

Does the landlord provide any utilities (or services)?

YesNo

Such as water, sewer, heat, trash removal, internet, TV, phone, etc.

Describe the utilities and services the landlord is responsible for:

Are pets allowed on the property?

YesNo

Is a pet deposit required?

Is a pet deposit required? YesNo

What is the pet deposit?

Is the pet deposit refundable?

Is the pet deposit refundable? Yes, if there is no damage at the end of the lease.No, the pet fee is non-refundable.

Are there any pet restrictions?

YesNo

Such as pet types, weight limits, etc.

Select which pets are allowed:

Select which pets are allowed: CatsDogsFarm animalsFishGuinea pigsHamstersReptiles (turtles, lizards, etc.)Other

Most landlords only allow cats and dogs.

Describe any other pets:

Is there a maximum number of pets allowed?

Is there a maximum number of pets allowed? YesNo

For smaller residences, there is usually a maximum of 2 pets.

What is the maximum number of pets allowed on the property?

Pet(s)

Is there a weight limit for any single pet?

Is there a weight limit for any single pet? YesNo

It is common, especially for smaller residences, for a weight limit to be required.

What is the pet weight limit?

Pounds

Is a move-in inspection required?

YesNo

If required, the landlord and tenant will need to record the current condition of the property. Both will need to sign and acknowledge any current damage or repairs needed.

Is smoking allowed on the property?

YesNo

Where is smoking allowed?

Where is smoking allowed? Anywhere on the property.Only in specific areas (specify).

Enter where smoking is permitted:

Ex. Only on the outdoor areas such as the balcony.

Is the tenant required to obtain renters insurance?

YesNo

Renters insurance covers a renter's belongings and liability, protecting against theft, damage, and accidents on the property. Many landlords require renters insurance to ensure tenants can cover personal property loss and liability, reducing the landlord's risk.

How much coverage is required?

$100,000 liability coverage is the common requirement made by landlords if renters insurance is required.

Is the tenant allowed to sublet the property?

YesNo

Subletting is when a tenant rents the property to another person (subtenant), but the tenant remains responsible for the lease terms.

Is an "authorized individual" allowed on the property?

YesNo

Such as a property manager, superintendent (super), or handyman.

Who is allowed on the property?

Do you want to enter their contact details?

Do you want to enter their contact details? YesNo

E-mail and telephone number.

Phone

E-Mail:

Was the property constructed before January 1, 1978?

YesNoI don't know

If yes, then the tenant must receive the "Lead-Based Paint Disclosure" per federal law (will be attached to this agreement).

Is there a co-signer to this lease?

YesNo

A co-signer is an individual, other than the tenant, who personally guarantees the successful performance of the lease.

How many co-signers?

Individual(s)

Co-Signer's Name:

Add mailing address?

Add mailing address? YesNo

Co-signer's address:

Street Address

Address Line 2

City

State

ZIP Code

2nd Co-Signer's Name

3rd Co-Signer's Name:

4th Co-Signer's Name

5th Co-Signer's Name

Add any additional terms or conditions?

YesNo

If any other agreements or arrangements are made.

Additional terms or conditions:

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