A while back I panned Mark Loeffler’s Rent To Own Book. I said rent to own might be good for investors according to the numbers but it wasn’t a really good idea. Well it turns out that I am righter than I think because according to Bob Aaron who is a Real Estate Lawyer, the Landlord & Tenant Board has decided that they have no jurisdiction in lease option purchases.
So You Thought The Landlord & Tenant Board Was Slow?
Welcome to Superior Court where lawyers cost a fortune compared to paralegals and justice moves slower than a snail. Now I did hear before that when you do a rent to own deal you need a lease as well as the lease option. I had no idea why. I guess the hope is that the tenant will be stupid and won’t mention the lease to own deal in which they’ve given thousands as a deposit and more in their above market rent. Because if that happens then Soyonara Sucker! Superior Court is about as fun as hangnail surgery.
Real Estate Agents Sleazy?
Real Estate Agents enjoy a reputation of being willing to do what ever it takes to get a property sold. Compared to some of the rent to own “unlicensed real estate agents” the usual real estate agent is a paragon of virtue. I’ve met a grand total of three in my travels and I wanted to spray myself down with hand sanitizer after meeting them. These characters had many properties as lease to own deals but they hired me when I worked for someone else to rent them out.
Considering Rent To Own Investing?
Read Bob Aaron’s article on it first…and keep in mind if the deal goes wrong you won’t enjoy it.
Canlii – Novotny V. Fowler
Bob Aaron mentions a case on Canlii Novotny V Fowler. I found two separate instances of judgments for the same case and guess what! the rent to own tenant is still in the house as far as I can tell. The owner of the house got to go to Superior Court twice! For fun he’s had all his teeth root canalled. The tenant owed him $3300 or 10 months rent…clearly it’s not a Toronto house.
Here’s another prediction, if the rent to own investors don’t set up an organisation to weed out the bad apples…the government will set one up for them. What do you think?