The Bank who has taken possession of the property has to honor your lease that is in effect until the end of the lease date. They will hire an Assest Management company or Broker to manage the property and collect the rent until the said lease has reached its end date. They may contact you and also offer you what is typically called "cash for key's" to evacuate the property sooner, but you do as a renter with an enforceable lease have the right to stay into the property.... more
Landlords are not required to pay any utilities; though, they generally prefer to pay the water, sewer and trash. If you do not like the arrangement, you might consider finding another apartment when your lease expires. If you don't have an extremely low income, you might even consider buying a lower-priced home or going through a program such as USDA Rural Development, where the mortgage payment is subsidized instead of the rent.... more
One of the biggest issues we are encountering here is pet owners needing to rent. If you are renting and have pets, you may be told "no" upfront, but you could agree to a shorter term lease as a "trial run" to show that you are responsible. Rents are commanding a premium as there are people who simply cannot buy now, so be prepared to provide first and last month's rent plus a "pet deposit" if necessary. If you are new to the area and uncertain about whether you want the rental long term, ask if a six-month vs a one year lease is an option. It will be a chance for you to "test" the neighborhood. Finally, be very wary of "rent to own" offers - they can come at a premium price. For the extra amount charged, you might be better off renting on a regular lease and putting that money aside to save for a starter home.... more
Rent to own, lease option and lease purchase are methods that might get your property sold under the right terms and circumstances. However from my 34 years experience selling real estate I can tell you there are many risks and pitfalls. What will be different in 6, 12 or 18 months from now with your tenant that will enable them to complete the purchase? I would suggest they have a mortgage lender do a pre-approval now so they and you know what it will take for them to obtain a mortgage. Is credit the only issue and if so what do they need to do to fix it? Will they be able to clean their credit up enough to obtain a mortgage? If you want to rent the property, then rent it without the legal binds of an option to purchase or some other arrangement. If you want to sell it then price it accordingly and it should sell.. The potential problems are numerous. If the situation should go bad you will have all the problems of a bad rental as well as that of sale that falls through. You may want to consider just continuing renting to this person and at sometime in the future if they are ready, willing and able to purchase then you can make the decision to sell the property to them. If you elect to go with some sort of rent to own agreement consult a good real estate attorney, have them prepare all the documentation and proceed with caution.