Rentwise! Chapter One -- Rent-to-own Deals

Sometimes advertised as Lease/Purchase Agreements, these come-ons appeal to naive tenants who believe there's an easy way to buy a house even if their credit is bad! Many times these offers are scams bordering on fraud. The tenant pays higher rent for the option to buy the place a year or two later if he comes up with a whopping down payment. The owner knows the tenant won't be able to save the $5000 or more needed to exercise the option. He may have worked the same deal—with the same house—over and over again. This scam is prevalent in lower-income neighborhoods, and renters with credit problems are typical victims.

Tenant Tip:
If you are thinking about a rent-to-own contract, see a real estate attorney before you sign anything. The Housing Info Line or the Lawyer's Referral Service is a good place to start. If you presently have a lease-purchase contract, talk to the Division of Consumer Affairs in Nashville. The Consumer Protection Act covers this type of scam: it says "a significant number of consumers have not been made aware of total costs, ownership transfer terms, or other important disclosures."

Normally a landlord will not offer owner-financing to a tenant unless they know and like each other well. The landlord who beguiles a stranger into such a contract does so with greedy intent.

WAITING LISTS
If your heart is set on one location and no units are available, discuss time-frames and determine exactly how many applicants are in front of you. You may decide to pay the application fee, have the landlord check out your references, and if approved, be placed on the waiting list. Be sure she can reach you anytime a unit becomes available. If the landlord repeatedly refuses to return your calls, or if you see vacancy ads for the same place, refer to the Discrimination section of this document.

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