In the rent-to-own business, scammers use all sorts of tricks to fill their properties. You should do your homework to make sure you don’t fall victim to the fine print or vague wording that often appears in scammers’ contracts.

Here’s a classic trick perpetrated by some rent-to-own scammers: They advertise a low monthly payment, only to surprise you later with additional fees included in the small print in the contract.

“In addition to rent, taxes, insurance and homeowners association due and assessments will be billed to the tenant quarterly with the first payment due 3 months after the lease date (15% penalty for all payments not received prior to expiration date) or monthly.

Read the fine print…

Did you know that the advertised monthly payment for a rent-to-own home with an Orlando-area company that offers rent-to-own homes does not include taxes or insurance, an additional minimum of $350.00-$400.00 per month?

What if you had discovered this little oversight of $350.00-$400.00 per MONTH AFTER you had signed the contract and AFTER you had adjusted your budget to get the keys to your dream home?

“20. ACCESS AND RENT FEE AGAIN: In the event this agreement is terminated prior to the date set forth in paragraph 1, or if a 30-day written notice to vacate is not served as required herein, the The parties to this agreement agree that the Landlord/Agent will be deemed to be harmed by difficult-to-ascertain re-rental costs. To cover expenses including, but not limited to, advertising, accounting and leasing fees, it is agreed that of re-rental equal to the current monthly rental amount, less $5.00 will be assessed to Tenant as liquidated damages for the aforementioned expenses”.

Small print destroys dreams!

According to this particular company’s lease option agreement, if you choose not to exercise your purchase option and fail to send a letter within 30 days prior to vacating, you will incur “liquidated damages” in an amount equal to the monthly payment minus $5.00.

“If a mortgage is obtained through a company other than XYZ, there will be a fee of 2% of the loan amount, made out to XYZ.”

If you choose not to use this rent-to-own company’s in-house lender for any reason, you will incur a penalty equal to 2% of the loan amount.

What is the lesson?

Simple solution to your nightmare

Read all the paperwork very carefully before you sign anything. As logical as it sounds, people desperate to get a home on rent-to-own terms somehow throw this important tip out the window.

They seem to think that they have to take unnecessary risks to get a good house in a good neighborhood.

Is not true!

If you don’t understand every word of what you are being asked to sign, take the paper to your attorney. Perhaps none of the sample clauses from actual contracts in this report will hurt you emotionally or financially; however, each clause could surprise you and possibly harm you if you don’t know.

If the person offering this house for rent to own refuses to let you review the paperwork, leave that person’s office, do not do business with that person.

A legitimate home leasing specialist will have no problem having a lawyer, family and friends review the paperwork.