• Rent To Own strategies offered by a professional, licensed, bonded and insured REALTOR ®.
  • Full MLS exposure included for all Rent To Own property sellers.
  • My brokerage is Sage Executive Group Real Estate the Okanagan's BIGGEST independent brokerage.

Sellers Info

Our Rent to Own solution for property sellers can be very compelling as you can get:
- full fair market value* for your property,
- a sizable initial option payment,
- you save on mortgage payout fees by timing the lease term with the mortgage expiration,
- you obtain high monthly cash flow through the combination of rent and the option fees,
- and you eliminate landlord obligations.
*Fair market value is determined by a professional appraisal.

In addition to the significantly higher profit a rent to own strategy offers one of the biggest benefits we provide is the number of applicants we go through (sometimes over a hundred) to find you a qualified Tenant/Buyer for your home. We meet with all applicants, we require they be pre-approved with a mortgage broker that checks their credit bureau and ability to pay, we require they have a significant deposit and we personally screen them to remove the typical worries of renting a property. It is important to note that the applicants understand that they will be responsible for all aspects of the property so you don't have to worry about being a landlord (other than depositing the post dated cheques).

With a rent to own agreement in place property sellers increase the profit on their property and can usually carry on with their plans, such as purchasing a new home, that might otherwise be delayed while they are waiting on the property to sell (see below for an example). It is true that the Option to Purchase may not complete (although to avoid this we screen all tenant/buyers thoroughly), but in that case the seller gets to keep the initial option fee and all monthly option fees paid as consolation. The seller always remains on title until the property is sold and may also enjoy a tax deduction on his mortgage interest payments during the option period. We will provide you with pre-approved higher paying tenants and the entire transaction managed by a licensed, bonded and insured real estate brokerage, REALTOR® and Mortgage Broker. If you are looking for a quick and stress free solution to sell your home we can help as we now have over 200 registered people looking for rent to own homes in Kelowna that are prepared to lease to rent your home for 1- 3 years with an option to purchase it at the end of the rental term at fair market future value plus 3.5% per year compounded.

  • Key Benefits of our Rent To Own program.

    YOU CAN ASK FOR AND GET THE FULL FAIR MARKET VALUE* - If you own a property that you want to sell, but it has very little or no equity and you have not been able to sell it we can get the full fair market price* by offering your property on our "rent to own" program and you will not be asked to discount your home it at all. In addition we also get you a 3.5% premium over the price for each year of the agreement.
    *Fair market price must be established at time of agreement by a professional appraiser.
    By offering a rent to own option on your property you increase the number of potential buyers and in turn increase the opportunity for us to obtain an Option to Purchase on your home quickly
    The tenant/buyers of your property will agree in writing to pay FULL FAIR MARKET value for your property in the option to purchase plus they typically pay a premium of 3.5% per year on top of the initial price. This eliminates the need to accept a lower price to make a sale.
    Market rent is paid by the clients purchasing your home ensuring you get full rental value on your home.
    A monthly option fee is also paid by the tenant/buyer providing a significant and higher positive cash flow.
    The tenant/buyer will treat the home as their own and will ensure rent is paid on time due to the terms of the agreements which includes the loss of their deposit and all monthly option fees paid should they be late with payments or not complete on the purchase.
    Your landlord responsibilities are drastically reduced as the agreements signed require the repairs to be taken care of by the owner/tenant who will treat the home as their own.
    Should the buyer/tenant not exercise the option to purchase the seller keeps the initial option to purchase fees and all monthly option fees paid.
    Seller remains on title until the Tenant Buyer exercises the option to purchase the property.
    You retain all the great tax benefit of ownership. So you still keep all your tax deductions and then some - mortgage interest, property taxes, and depreciation. (Seek a tax accountant for professional advice.)

  • Property sellers that benefit from this program.

    Sellers who want to purchase a different property than the one they are in and wish to act quickly to secure the new property. If equity exists in the current property the Seller may be able to access the equity with a refinance for the next down payment.
    For sellers that need to sell, and the lack of a sales costing them unnecessary expenses and aggravation, rent to own can provide a great solution.
    Sellers who do not need the cash immediately and would consider a steady monthly payment instead secured by real estate titled in their own name with the additional benefit of selling the property at full market value.
    Sellers who are considering renting out their house due to various circumstances but do not have the expertise, time or desire to manage tenants properly. Rent to own Tenant /Buyers have an ownership mentality taking better care of the property than regular tenants. Due to the risk of losing their option fees they pay on time, take care of all repairs, and won't call you to fix a clogged toilet late at night.
    For sellers interested in higher cash flow rent to own offers this with increased monthly cash flow from the combination of the market rent rate and option fee.
    Sellers who cannot afford traditional REALTOR® fees out of an immediate sale or afford to pay the mortgage payout penalties but could if they could extend the closing date to meet their mortgage end date.

  • How Sellers Can Purchase a New Property with Rent To Own

    Everyone's situation is different and will have variations to this example such as mortgage balance and lease payments. To determine how and if this strategy will work for you we will have a licensed mortgage broker contact you to evaluate your specific information and to discuss necessary plan that you need to ensure your objectives are met. This particular example is prepared to illustrate how Rent To Own can be used to purchase a $450,000 property when you currently own a $300,000 property with a $150,000 mortgage
    A typical Rent to own agreement on a property valued at $300,000 would have the tenant/buyer paying a $1600 month lease payment with an additional $500 monthly option fee.
    This example assumes the seller owns a $300,000 property, with a mortgage balance of $150,000 and is paying $1200/mth in mortgage payments.
    Lending rules currently in effect allow for the seller to mortgage the property to 80% of the appraised value.
    Sellers obtains a new mortgage of $240,000 paying off the $150,000 owed on the original mortgage, leaving $90,000 cash balance for the seller. The new mortgage estimated monthly payment on the original property is $1150.
    Seller applies the $90,000 cash plus the $10,000 option payment provided by the tenant/buyer as a deposit on the $450,000 property leaving a mortgage of $350,000. The estimated mortgage payment on a 25 year amortization would be $1700/mth.
    Seller presents new lease on the original property showing a $1600 month agreement in place. This is used to "offset" the mortgage payment. Hence it doesn't interfere with the sellers ability to qualify for the $450,000 home purchase.
    In addition to the lease (rental amount) the seller receives a further $500/mth option fee from the buyer/tenant for the "option to purchase" the original property.
    Positive Cash Flow Overview on Original Property
    + $1600 Lease (rent) payment on intial property
    + $500 option fee on intial property
    - $1150 mortgage on the intial property
    - $200 taxes on initial property
    - $60 insurance on intitial property
    = + $690 positive cash flow to the seller on original property.

    New Property Mortgage vs Old Original Mortgage Analysis
    New Mortgage Cost = +$1700
    Old Mortgage Cost = -$1200
    Total increased mortgage cost = -$500 more
    Positive Cash Flow = + $690
    Total monthly cash = +$190

    The new mortgage is $500 more expensive per month BUT the seller has a $690 positive cash flow from the existing property. The seller is $190 better off with the transaction


    Should this program sound of interest the next step would be to contact us so we can answer any further questions and should you wish to proceed we will then schedule a free consultation and current market evaluation.