Renting after eviction may seem daunting, but it’s not impossible. Yes, getting evicted is a terrible experience to deal with and a frustrating process to handle afterward. It’s something everyone fears and when it happens, you’re left wondering what the process of renting after an eviction is like.
While starting to find a new apartment after getting an eviction notice is a daunting process, it’s not impossible. With the right knowledge and preparedness, renting after eviction will be much easier. Don’t let an eviction weigh you down — we’ve got you covered with useful information so you’ll be renting after an eviction in no time.
Things to do if you’ve been evicted
If you’ve been evicted and are now ready to begin searching for a new space to rent, there are some things you should consider that will help make the process easier. Here are 10 tips for renting after an eviction.
1. Work on your credit score before renting after eviction
Your credit and legal history are two separate records, but when applying for a new place to rent, they become intertwined. An eviction won’t show up on a credit report itself but it will show up on a background check. Almost all landlords or apartment complexes will require a background check as part of the rental application process. So, if you have a past eviction, the landlord will almost certainly see it on your background check.
So how does that impact your credit score? We mentioned an eviction won’t show up on the credit report, but, if a previous landlord sent unpaid rent information to a collection agency or if your landlord sued you in court and won, this will all negatively impact your credit score. If you’ve been evicted, you need to work to improve your credit score so you can use a high score to advocate for yourself when going to rent a new property.
Start by paying off outstanding debts and paying future bills on time. A good credit score can make or break your ability to rent an apartment in the future.
2. Be honest
When people say “honesty is the best policy,” they mean it. It’s always best to share upfront with a possible future landlord about your past eviction notice — honesty is the best policy. Renting after an eviction is already hard enough and you don’t want to make it harder by having your future landlord find out you lied or withheld the truth. If they ask about your previous eviction you can simply explain the situation that led to your eviction.
Sometimes, the landlord will be more willing to work with you after hearing your side of the story.
3. Look at renting from a private party
Renting from a private owner as opposed to an apartment complex is always an option for those with eviction notices on their records. Because they’re renting the space privately they don’t have to work within the guidelines and restrictions that a regular apartment complex does. Because of this, they might be more willing to work with you and your situation. As mentioned above, be as open and honest with them as possible so they can fully understand your situation.
4. Pay more upfront
There are two ways to really get a person to help you out — buy them food or give them money. When looking for a place to rent, try and offer more money upfront. If you have the means, offer to pay a higher security deposit or two months’ rent upfront. This way the landlord knows you’re serious about renting and paying on time.
5. Get a co-signer
Getting a co-signer is another idea to explore while trying to rent after an eviction. If you know someone who is willing to and has good credit, ask if they’ll co-sign. Doing this might make the landlord more inclined to rent to you. But, keep in mind that if you don’t pay, your co-signer will have to.
6. Try and clear your record
An eviction stays on your record for seven years. That being said, there are some ways to clear your record sooner. If you’ve paid off any outstanding rent debts, reach out to your previous landlord and ask them to remove the eviction from your record.
If you haven’t yet been able to pay off an outstanding rent debt, still talk to your previous landlord. Ask them if you are able to pay off your rent if they’ll consider removing your eviction.
7. Refine your search renting after eviction
When searching for an apartment, refine your search and filter for apartments that either don’t do background checks or that accept applicants with previous evictions. By doing this you won’t waste your time looking at places guaranteed to turn you down.
8. Find the right references
Because renting after eviction is a tough road, you should have a lot of references ready before applying to rent an apartment. Because evictions are sometimes seen as a character flaw, you’ll want a reference to point out your good character traits.
Get friends, employers or colleagues to write letters speaking to your character and what a great tenant you’ll make. Submit these letters along with your rental application so that the landlord can read them and get a better sense of who you are and how you’ll be as a potential tenant.
9. Get a letter of credit when renting after eviction
Your goal when renting after an eviction is to get the landlord to understand what happened and still rent to you. Writing a letter of credit is a great start on this process. Write up your previous credit history and how you’ve changed. Tell them if you’ve gotten a new job or how you’re planning on doing things differently this time around.
10. Make a good first impression
First impressions last for a long time. When meeting with the landlord, dress nice and wear something that says you’re a reliable renter. Be polite and positively engage with them whilst speaking. You want to leave with them thinking you’re the best person to rent to. By doing this, they might be more willing to work with you and your situation.
Home sweet home
Being evicted is an extremely difficult moment to go through. And then on top of that, renting after eviction is a hard task. It takes time, effort and energy, but fear not it can be done. Using the knowledge and tips listed above you’ll be able to better prepare yourself for this daunting task.
Make sure to gather all the appropriate documents and references with you when going to meet with your potential new landlord. Tell them your story and appeal to their hearts. While it may seem like your past is still haunting you, there is hope that you’ll be able to find a new place to call home.
Ashley Singleton is a writer who loves following and writing about current lifestyle, DIY and home improvement trends. You can read some of her other work on the Lady Spike Media website. In her spare time, she performs stand-up comedy in Los Angeles.
The information provided on this website does not, and is not intended to, act as legal, financial or credit advice. See Lexington Law’s editorial disclosure for more information.
Ignoring a collection agency can negatively impact your credit, cause your debt to accrue interest and potentially result in a lawsuit. It’s ultimately better to pay or dispute a debt than avoid debt collection agencies altogether.
While it may be tempting to simply ignore debt collectors, that is generally a poor long-term strategy. Several potential consequences of not paying a collection agency include negative changes to your credit, continuing interest charges and even lawsuits. Even if you can’t pay the debt in full, it’s often best to work with the collection agency to establish a payment plan.
Collection agencies are unlikely to give up on a debt, especially if you owe a substantial amount. The stress of having a debt sent to collections can be tremendous, but waiting out a collection agency and hoping the problem goes away isn’t a viable option.
Read on to learn more about four possible consequences of not paying your debt—and at the end of the article, we’ll offer some strategies for dealing with debt collectors.
1. Interest charges
Even after your debt goes to collections, interest charges can continue to accrue. According to the Fair Debt Collection Practices Act (FDCPA), the collection agency can also charge any fees or interest rates outlined in your original contract—like the interest rate of a loan.
The collection agency cannot raise your interest rate or add new fees, but it may choose to continue generating interest or charge late fees if they were part of the original agreement. That means ignoring the debt collector doesn’t just fail to make your debt go away—in fact, the amount you owe may continue to grow.
2. Credit effects
Having an account sent to collections will lead to a derogatory mark on your credit report. Unfortunately, the mark will likely stay on your credit report for up to seven years even if you pay off your debt with the collection agency. It’s also possible that paying off your collection account may not improve your credit.
Nevertheless, paying off a collection account could help your credit situation in several ways:
The account will be shown as “paid in full” or “settled.” When future creditors look at your report, a collection account that was paid in full sends a more positive signal than an unpaid debt.
Updated scoring models, like the FICO® Score 10 Suite, may regard paid collection accounts differently. Changes to the way FICO calculates credit scores may mean that collection accounts paid in full won’t affect your credit
Sticking to a payment plan could help establish good credit habits. As you work to pay off your debts, you’ll establish positive credit behaviors and work to fix your credit over time.
While you may not see an immediate improvement to your credit after paying off a collection account, it’s an excellent first step toward creating a more positive credit history for yourself. Over time, the impact of a collection account on your credit will start to decrease, which means that your new credit habits—paying on time each month and keeping utilization low, for instance—will start to have a strong effect.
3. Collector communications
Collection agencies will continue to try to reach out to you unless you pay your debt, particularly if you owe a significant amount. Collectors can contact you by phone, mail, fax, or email from 8 a.m. to 9 p.m. Additionally, they are allowed to contact your friends and family to try to locate you—so simply avoiding their phone calls is not a viable strategy.
Also, it’s important to know that collection agencies can continue to reach out to you as long as it is still within the statute of limitations. The statute of limitations, or how long your debt is considered valid, varies based on the type of debt and your state. That said, since the longest statute of limitations can be upward of 10 years, some collectors could call you long after the seven-year mark, which is when the collection account clears from your credit report.
According to federal debt collection laws, you do have the right to request in writing that agencies stop contacting you. If they don’t stop contacting you, the Consumer Credit Protection Act lets you file a complaint with the Consumer Financial Protection Bureau.
However, asking a collection agency to stop contacting you doesn’t mean the debt goes away. If you continue to ignore the debt, the collection agency may file a lawsuit.
4. Lawsuits
If a collection agency intends to get paid for your debt, it may decide to initiate a lawsuit against you. After the collection agency files the lawsuit with the state, you’ll receive a copy and a summons to appear in court.
You’ll want to consult with an attorney immediately, as failing to appear in court will mean you lose by default. In that case, the judge could award the collection agency the ability to do the following:
Place a lien on your property, which can be a mark on your public record.
Garnish your wages, which means your employer may give part of your paycheck to the collection agency before you receive it.
Freeze some or all of the funds in your bank accounts.
If you do receive a court summons, work with a qualified lawyer to help build a case, which will hopefully lead to a settlement with the collection agency.
Can bankruptcy help me deal with a debt collection agency?
Bankruptcy is a legal process that can help businesses and individuals eliminate their debts and stave off collection agencies. There are multiple types of bankruptcy plans (called Chapters) that each come with several drawbacks. Bankruptcy can also drastically hurt your credit and stay on your report for 10 years, so it’s ultimately considered a last resort.
Chapter 7 bankruptcy
Credit card debts, medical bills and personal loans can all be eliminated by Chapter 7 bankruptcy. This process usually occurs over three to four months and is overseen by a federal bankruptcy court. The court then issues an automatic stay and assigns a trustee to your case.
The trustee will then appraise your possessions and liquidate assets to help reduce your debt.
Chapter 13 bankruptcy
Chapter 13 bankruptcy covers many of the same debts covered by Chapter 7 bankruptcy. Here, filers work with bankruptcy courts and attorneys to create a repayment plan. After three to five years of routine payments, a filer’s bankruptcy will eventually be discharged. Chapter 13 doesn’t seek to liquidate your assets, so you ideally won’t have to sell your valuables.
It’s possible to avoid filing for bankruptcy altogether, which requires making a plan to deal with debt collectors rather than ignoring them.
Strategies to deal with debt collectors
Although it can be overwhelming to receive communication from a debt collector, you can formulate a plan to deal with debt collectors to improve your finances. With the right approach, you’ll be able to slowly fix your credit and get back on track.
Use the following approach to begin dealing with the collection agency:
Set up a payment plan with the debt collector, or see if you can reach a debt settlement for a smaller amount of money.
Start practicing good financial habits by keeping your credit utilization low, making payments every month and only spending what you can afford. Members of the “800 club,” Americans with credit scores of 800 or higher, often have great financial habits that you can take inspiration from.
If the debt is not yours or has already been paid, you can start the dispute process and potentially get the collection mark removed from your credit report.
Over time, you can rebuild your credit and pay your debts. However, if the debt is illegitimate or misreported, you should immediately challenge it. To help with that process, consider working with the credit repair consultants at Lexington Law Firm, who can assist with credit repair and address negative items on your credit report.
Note: Articles have only been reviewed by the indicated attorney, not written by them. The information provided on this website does not, and is not intended to, act as legal, financial or credit advice; instead, it is for general informational purposes only. Use of, and access to, this website or any of the links or resources contained within the site do not create an attorney-client or fiduciary relationship between the reader, user, or browser and website owner, authors, reviewers, contributors, contributing firms, or their respective agents or employers.
Reviewed By
Paola Bergauer
Associate Attorney
Paola Bergauer was born in San Jose, California then moved with her family to Hawaii and later Arizona.
In 2012 she earned a Bachelor’s degree in both Psychology and Political Science. In 2014 she graduated from Arizona Summit Law School earning her Juris Doctor. During law school, she had the opportunity to participate in externships where she was able to assist in the representation of clients who were pleading asylum in front of Immigration Court. Paola was also a senior staff editor in her law school’s Law Review. Prior to joining Lexington Law, Paola has worked in Immigration, Criminal Defense, and Personal Injury. Paola is licensed to practice in Arizona and is an Associate Attorney in the Phoenix office.
Rent prices are on the rise, with the average cost increasing 18% between 2017 and 2022. But buying a home requires a hefty down payment and good credit. Renting to own your home can give you the best of both worlds, but there are some downsides.
If you’re thinking about signing a rent-to-own agreement, it’s important to weigh the pros/cons of rent-to-own home deals. Here’s what you need to know before you sign on the dotted line.
What are rent-to-own homes?
When you own a home, part of your monthly payments goes toward paying off the principal. If you stay in the home long enough, you’ll own it.
The same doesn’t apply to rentals. Your monthly rent solely covers your costs of living in that home, whether it’s a condo, apartment, townhouse, or single-family house.
A rent-to-own home lets you pay rent to live on the property, with the option to buy it when the lease runs out. In some cases, a portion of your rent goes toward the purchase price, but that isn’t always the case.
How does rent-to-own work?
A rent-to-own agreement is essentially a lease agreement with an option to buy. Rent-to-own contracts should be read thoroughly. Those options can vary from one contract to another.
When you sign a rent-to-own contract, you pay an upfront fee called an option fee. This is typically 1 to 5% of the home’s purchase price, and it’s non-refundable.
It’s important to note that a lease does not relieve you of the requirements to buy a house. You’ll still have to qualify for a mortgage and make a down payment. It’s merely a way to buy yourself some time and possibly put some of your rent toward the purchase price of a home.
Lease Option vs. Lease Purchase
Before you sign, pay close attention to the lease agreement you’re signing. There are two types, and one contractually obligates you to buy the property.
Lease Option Agreement
A lease option agreement is the best deal of the two for you, the buyer. You’re signing a lease option contract that merely gives you first rights to the house when the lease is up. If you change your mind, find a better deal, or can’t qualify for a mortgage, you can find somewhere else to live and move your belongings out.
Since the option fee is nonrefundable, it’s important to note that you will lose money if you choose not to buy. Calculate this loss when you’re deciding whether to buy.
Lease Purchase Agreement
Unlike a lease option agreement, lease purchase agreements obligate you to buy at the end of the lease. Since it’s a contract, that means you’re legally obligated to purchase the house.
This can be risky for a couple of reasons. Once you’re in the house, you may see issues you didn’t notice when you were first touring the house. Things could change with the neighborhood or your circumstances that you couldn’t know at the outset.
But the biggest issue with a lease purchase contract could simply be that you aren’t eligible for a mortgage to buy the house. Make sure you know, up front, what penalties or liabilities you’ll face if you can’t buy the house when your lease is up.
Even though both agreements operate differently on your end, they do obligate the seller to give you the option to buy when your lease expires. This puts you in a position to own a home at a predetermined future date, giving you the opportunity to start planning.
Length of a Rent-to-Own Agreement
Rent-to-own contracts start with a lease period that can be up to five years but is usually less than three. The thought is that the rental period will give a renter time to qualify for a mortgage. During this time, you’ll work on building your credit, if necessary, and saving for a down payment.
In some cases, a rent-to-own arrangement could have renewal terms. That means if you reach the end of the lease and want more time, you can extend the lease. With this option, though, the property owner could increase your monthly rent or the purchase price.
Preparing for Homebuying
During your lease term, you’ll make each monthly rent payment in exchange for remaining in the house. But it’s important during that time that you work toward purchasing the house when your time is up. Here are some things to do to boost your chances of landing a mortgage once your lease expires.
Boost Your Credit Score
Your rent-to-own deal requires that you qualify for a mortgage once the term is up. To do this, you will need to meet the minimum credit score requirements. You can get a free copy of your credit report each year at AnnualCreditReport.com, but there are also credit monitoring services that can help you stay on top of things.
Although requirements can vary from one lender to the next, Experian cites the following credit scores as necessary to land a mortgage:
FHA: If you qualify, a Federal Housing Association loan will accept credit scores as low as 500.
USDA loans: Those who meet the requirements can qualify with a score as low as 580.
Conventional loan: Generally 620 or higher, but some lenders require 660 at minimum.
VA loans: Eligible military community members and their families can obtain loans with scores as low as 620.
Jumbo loan: These loans cover houses at a higher price, so you’ll need a score of at least 700.
Save for a Down Payment
In addition to a good credit score, you’ll need to put some money down on your new home. Down payment requirements vary by loan type, but it’s recommended that you put at least 20% down. That means if you’re buying a $200,000 home, you’ll need at least $40,000 by closing.
There are lower down payment options, but if you choose those, your mortgage payments will include something called private mortgage insurance. This will increase your monthly payment by $30 to $70 per $100,000 borrowed.
If you can’t save up 20%, you may qualify for an FHA loan, which requires as little as 3.5% down. Both VA and USDA loans have zero down payment options, and there are programs offering down payment assistance to those who qualify.
The best part about rent-to-own properties, though, is that some come with rent credits. With a rent credit, a percentage of your rent will go toward your required down payment. Calculate in advance how much you’ll have in that escrow account at the end of your lease to make sure you save enough to supplement it.
What are the pros of rent-to-own?
Rent-to-own homes can be a great option, especially during a tight housing market. If there’s a house you want to buy, but you can’t make a down payment or your credit isn’t where it should be, it could be a great workaround. Here are some of the biggest benefits of rent-to-own agreements.
Rent May Go Toward Purchase Price
Depending on the terms of the rental agreement, renting to own could help you work toward paying for the home. Instead of the full amount of your rent being pocketed by a landlord, a percentage of your rent could go toward the eventual purchase price. Before signing, pay attention to rent credits and try to negotiate the best deal possible.
The Purchase Price Is Locked In
When a landlord agrees to a lease option, the home’s purchase price is written into the contract. That price will typically be higher than what the market says it’s currently worth. This means if the U.S. housing market sees an unexpected increase, you’ll be buying the home for less than its value. Even if the market dips, once you purchase the house and remain there for a few years, you may be able to sell it at a profit.
You’ll Buy Extra Time
For many renters, the rent-to-own period provides time to qualify for a mortgage. If you’ve researched all the options and found you’re close but not quite there yet, a rental period could be just what you need.
Before you choose this option, though, take a look at your circumstances. If substantial existing debt and poor credit mean you won’t qualify, you may need more than the few years you’ll get with a rent-to-own agreement.
No Moving Necessary
Let’s face it. Moving can be a pain. You have to pack everything up, line up a moving truck and get help moving, and unpack your items once you’re in the new location.
With a rent-to-own agreement in place, you skip the hassle of moving. You’ve already been in that home, making monthly rent payments, for at least a couple of years. You’ll simply go through the closing process and switch from rent payments to mortgage payments.
What are the cons of rent-to-own?
If you can get a mortgage, that’s always going to be a better option than renting or leasing to own. But there are some instances where renting without the buy option could be better for you. Here are some things to consider.
Rent-to-Own Home Maintenance
Before you sign any lease agreement, it’s important to read the fine print. One thing to note, specific to own agreements, is who will be responsible for maintenance during the rent-to-own period. If you rent without the promise of eventual ownership, your landlord will take care of those costs. In some cases, rent-to-own agreements require the renter to handle all repairs.
But there’s an upside to handling repairs on your own. To your landlord, the property is technically yours. That means you likely will give it more TLC. Still, it’s well worth it to pay for a home inspection before you agree to a rent-to-own agreement. This will identify any serious issues that will need to be addressed before you buy.
Option Fee
One distinguishing feature of a rent-to-own property is the option fee. This is usually between 1 and 5% of the purchase price and is non-refundable. That means if you don’t ultimately qualify for a mortgage, you’ll lose that money.
Home Values Could Drop
Property values aren’t guaranteed. Your landlord estimates the value of the property, but if you’re in a rising market, you might get that home at a steal. While that’s good news for you, the reverse can happen. If housing prices drop substantially during that time frame, you could find yourself buying a property for more than it’s worth.
Contract Breaches Can Be Costly
Rental agreements are a legal obligation. If you don’t pay your rent, your landlord can evict you and keep your security deposit. But rent-to-own contracts bring an additional level of risk. Missed payments mean you could be evicted and lose all the money you’ve put in. That includes the upfront fee and any rent credit you’ve earned.
All that money will also be lost if you can’t qualify for a mortgage when your rental time is up. These agreements can give you some breathing room. However, if your low credit scores, income, lack of a down payment, or employment situation make you ineligible for a mortgage, you could be searching for another rental while losing everything you’ve paid on the lease-to-own home.
Steps to Buy a Rent-to-Own Home
Once you’ve decided renting to own is the route you want to take, you may wonder what to do next. The following steps can help you ensure you get the best deal in a rent-to-own agreement.
1. Find a Home
This is more challenging than it might sound, especially if you’re looking in a competitive real estate market. Rent-to-own homes are extremely rare, so you may have to find a home for sale and try to negotiate this type of setup.
Typically, homeowners become renters when they can’t sell their homes. This means your rent-to-own contract might be on a home that’s in a less desirable or convenient area of town. For someone whose home has been on the market for a while, being able to collect rent money with the promise of a sale in a few years can be a huge relief.
For best results, find a real estate agent who can help you track down a home and negotiate with the seller. The National Association of REALTORS® maintains a directory of real estate agents, but you can also ask for a referral or find real estate agents nearby who have brokered these types of deals recently.
2. Research the Home
Even if it’s tough to find a lease-to-own home in your area, don’t snatch up the first one you find. Crunch the numbers to make sure the rent and purchase price make financial sense for you. Look at the sale history of the home to verify that the owner’s estimated purchase price is somewhat within what the median home price will likely be when your lease expires.
3. Research the Seller
The seller needs to be looked into as well. This is even more important with rent-to-own agreements since this person will be your landlord for the entire lease period. If you see any red flags during your interactions with the seller, move on.
4. Choose the Right Terms
Before you make a real estate purchase, you would have a closing attorney review the documents. The same goes for a rent-to-own agreement. Run all the paperwork past a real estate attorney to make sure there’s nothing in the contract that will hurt you in the long run.
Your real estate agent should be able to negotiate the best terms for you, including how each rent credit will help you build equity and what happens at the end of the lease.
5. Get a Property Inspection
Any time you make a home purchase, it’s essential to know what you’re buying. The same is true for rent-to-own properties. A home inspector can check things out and make sure you aren’t purchasing a home with serious issues.
6. Start Preparing to Buy
Once you start making rent payments, it’s time to start preparing for your eventual home purchase. Chances are, you’ll have to make a sizable down payment on a home loan, so plan to have that ready. Also, keep an eye on your score with all three credit bureaus and make sure you’ll qualify.
A rent-to-own contract can be a good deal for both the buyer and the seller. It can give you time to save money and improve your credit score. A real estate lawyer should take a look at your contracts and make sure your best interests are protected.
Bottom Line
Rent-to-own homes present a unique option for potential homeowners. This approach offers the opportunity to enter the homeownership arena at a slower pace, allowing individuals to build credit, save for a down payment, and experience living in the home before making a final purchase decision.
However, the rent-to-own path isn’t free from drawbacks. Potential buyers should be wary of unfavorable terms, higher monthly payments, and the risk of losing money if they decide not to buy. Ultimately, like all significant decisions in life, choosing a rent-to-own option requires careful consideration and thorough research.
Frequently Asked Questions
Where can I find rent-to-own houses?
Rent-to-own houses can be found through specialized websites dedicated to these types of listings, local real estate agents familiar with the concept, or sometimes through classified advertisements in local newspapers or online platforms.
Can I find rent-to-own homes on Zillow?
Yes, Zillow does list rent-to-own homes. When searching for properties, you can filter the search results to show only rent-to-own options. However, availability may vary based on the region and market conditions.
How long is the typical rent-to-own contract?
The typical lease term ranges from one to five years, but terms can vary based on the agreement between the homeowner and tenant.
Do I have to buy the house at the end of the lease?
No, the decision to buy is optional. However, if you decide not to purchase, you may lose any upfront fees or additional monthly amounts set aside for the potential purchase.
Can the seller change the purchase price once set?
Generally, the purchase price is fixed in the initial agreement. However, some contracts may have clauses allowing price adjustments based on market conditions.
What happens if the property value decreases during the lease period?
If the home’s value decreases and you’ve agreed on a set purchase price, you could end up paying more than the current market value. It’s crucial to negotiate terms that protect your interests.
Who is responsible for repairs and maintenance?
The agreement should clearly outline these responsibilities. In most cases, the tenant bears the responsibility for maintenance and repairs during the lease term.
What’s the benefit of a rent-to-own agreement for sellers?
Sellers can generate rental income while waiting to sell, often at a premium. It also widens the pool of potential buyers, especially those who need time to improve their credit or save for a down payment.
How do property taxes work in a rent-to-own agreement?
In a rent-to-own scenario, the property taxes are typically the responsibility of the homeowner, as they still retain ownership of the property during the rental period. However, the specific arrangement can vary based on the terms of the agreement.
Some contracts may stipulate that the tenant pays the property taxes directly or reimburses the homeowner. It’s crucial for both parties to clearly understand and agree upon who will cover the property tax obligation before entering into a rent-to-own contract.
If I don’t buy, do I get a refund for the extra money paid?
Typically, the extra money paid above regular rent, often referred to as “rent premium,” is forfeited if you decide not to buy.
Is the rent in a rent-to-own agreement higher than usual?
Often, yes. A portion of the monthly rent may be used for the potential down payment or purchase price, making it higher than the average rent for similar properties.
What’s the difference between rent-to-own and mortgage?
Rent-to-own is an agreement where a tenant rents a property with the option to buy it at the end of the lease. No bank is involved initially, and the tenant isn’t obligated to buy. A mortgage, on the other hand, is a loan specifically for purchasing a property. The buyer borrows money from a bank or lender and agrees to pay it back with interest over a predetermined period.
Does rent-to-own hurt your credit?
A rent-to-own agreement, in itself, doesn’t usually affect your credit. However, if the homeowner reports late payments to credit bureaus, it could hurt your credit score. On the positive side, consistently paying on time and eventually securing a mortgage can benefit your credit.
What is another name for rent-to-own?
Rent-to-own agreements can go by various names, including:
Lease to purchase
Lease option
Rent-to-buy
Rent-to-purchase option
Lease purchase
Each of these terms represents the concept of renting a property with the potential option to buy it after a set period.
The FHA finally released details about its much anticipated HAWK for New Homebuyers pilot program, which offers savings on mortgage insurance premiums to borrowers who complete housing counseling courses.
The agency revealed today that borrowers who complete housing counseling before signing a contract to purchase a home AND pre-closing housing counseling will receive a 50-basis point reduction in upfront mortgage insurance premium (MIP) costs, along with a 10-basis point reduction in the annual MIP cost.
At the moment, the upfront MIP on FHA loans is 1.75% of the loan amount, so those who take part in HAWK (Homeowners Armed with Knowledge) will whittle that number down to a more reasonable 1.25%.
This fee is typically financed into the loan amount, so borrowers will save money on interest each and every month they pay their mortgage because of the smaller outstanding balance.
As far as annual premiums go, they range anywhere from .45% to 1.55%, with those taking out 30-year mortgages paying a minimum of 1.30%. For those that put down the minimum 3.5% and go with a 30-year fixed (pretty common), the annual fee is 1.35%.
All of these numbers would drop by .10%, which would provide additional savings to borrowers who complete the required counseling with independent non-profit organizations.
Additionally, borrowers who participate in post-closing counseling and stay current on their loans (no serious delinquencies after two years) will receive another 15-basis point reduction in annual MIP costs.
So for a borrower subject to the common 1.35% annual MIP, they’d see it drop to 1.10% after two years assuming they paid their FHA loan on time each month.
All in all, the savings are expected to total about $325 a year for the average home buyer ($180,000 loan amount), or roughly $9,800 over a 30-year mortgage term, which is certainly nothing to sneeze at.
Why Are They Offering a Discount for Counseling?
HUD is willing to offer the sizable discount because research has proven that mortgage delinquency rates for borrowers who have received counseling are 29% lower for first-time home buyers and 15% better overall.
Those are pretty strong numbers, so it will cost them less money to provide a discount to borrowers who actually understand what they’re getting into when purchasing a home.
At the same time, HUD has been getting a lot of flak from organizations like the National Association of Realtors, who have argued that the FHA is pricing out hundreds of thousands of would-be homeowners with all its recent premium increases.
This move should put those concerns to rest and increase business at the FHA, which has been waning thanks to the increased costs. Their book of business should also improve with better-educated buyers paying on time more often.
And with an incentive to stick with the FHA for a longer period of time, the agency can make more money by avoiding early prepayments.
As it stands now, many borrowers simply refinance into conventional loans after a short period of time to avoid the long-term costs associated with FHA loans.
The details of the HAWK for New Homebuyers four-year pilot program are open to comment, so final MIP reductions may vary based on the feedback received. Stay tuned for more details as they come!
Update: The House Appropriations Committee approved the fiscal year 2015 Transportation, Housing and Urban Development funding bill on May 21st, but included a provision prohibiting the use of funds for the the Homeowners Armed With Knowledge (HAWK) program. So while well-intentioned, it may not actually come to fruition.
It’s not uncommon for credit card issuers to close accounts. Sometimes they do so to lessen their risk when the economy is in distress, generally as a reaction to your spending activity — or lack thereof.
After all, issuers make money from every tap or swipe, so inactive cards aren’t fruitful for them.
“If you’re not paying an annual fee and you’re not using the card, you’re below the zero revenue line, you’re actually costing the card issuer money every month,” says John Ulzheimer, a credit expert formerly with FICO, a credit-scoring company, and Equifax, a major bureau that provides consumer reports. “Eventually they’re going to close your account because you’re not generating any swipe-fee income.”
An account closure can harm your credit, but if you’re fortunate, a credit card issuer might send you a notice as a courtesy beforehand. That can provide you time to make some moves to counter any negative impact to your credit scores. Regardless, if you take no actions, it could take longer for your credit to bounce back.
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Ask the issuer to reconsider
Before the account is officially closed, call the customer service number on the back of your card to see whether the issuer will reevaluate the decision. There’s no guarantee, but there’s also nothing to lose by trying.
If the notice the issuer sent provided a reason for the account closure, use it to make a case. For instance, if the decision is due to an inactive card, let the issuer know you plan to use the card more.
One way to ensure consistent use: Set up autopay with the card for a recurring subscription.
Seek an alternative if the issuer says ‘no’
For Jake Dube, an engineer based in Ohio, there wasn’t much room for negotiation when his credit card issuer changed terms and presented him with an ultimatum. He would have to pay a monthly fee or opt out and have his account closed. “I opted out and it shut the account down,” he says.
An account closure can affect how much total available credit you’re using. It’s a key factor that impacts your credit scores. “The amount of the score impact is going to be variable based on the amount of credit card debt and the other credit cards you have on your report,” Ulzheimer says.
So if a credit card issuer refuses to keep your credit card open, try countering those effects by applying for a new one with a different issuer.
Dube, who’d already used the old card to build credit, didn’t waste time getting a new card. “I applied for it the same day I opted out,” he says. “They accepted it within 24 hours.”
Be aware that when you submit a new credit card application, the issuer will typically conduct a hard inquiry on your credit, which can also cause your credit scores to drop temporarily. They will rebound, however, with responsible card use, including paying on time and, ideally, in full every month.
Some steps to consider include:
Reviewing your credit score first so that you can apply for credit cards in your score range. You can often get a free credit score through your current credit card issuer or through a third-party personal finance website. Research different credit cards and qualifying credit score ranges to narrow down options based on likelihood of approval.
Using an issuer’s screening options to determine your odds. By doing an online search for issuers that offer “pre-qualification” or “preapproval” and going through the screening process, it’s possible to better understand your chances of approval. Some issuers can review basic information about you and run a “soft” credit check to determine eligibility for a card without affecting your credit scores. Only once you accept an offer and formally apply for a credit card will the issuer conduct a hard inquiry on your credit.
When you whittle down options, you may find that you also qualify for more valuable deals — especially if you’ve climbed up the credit score ladder.
“The new card I have has no fees and it gives me like 5% back on a lot of categories, 3% on some others, and like the minimum is 1.5% or 2%,” Dube says. “Overall, it’s been a much better card.”
Consider diversifying your credit further
If you have only one or two credit cards with low credit limits, Ulzheimer recommends opening other credit cards with different issuers and using them sparingly.
“You’re really putting yourself into a safer position because if one of them gets lost or stolen, or if one card issuer chooses to close the account, then you have at least one, if not two, backup cards,” he says.
With another credit card, it may also be possible to minimize any blow to your credit in the future if an issuer closes an account.
This article was written by NerdWallet and was originally published by The Associated Press.
On January 1st, I could have never imagined what 2020 would bring. I started the year, as always, hopeful that this year would be the year I achieved all my goals. Then a pandemic changed everything.
But the pandemic is a stark reminder of just how quickly life can change. It’s important to have at least a little money set aside, as well as learning to budget and reduce expenses. Even if you plan to do that moving forward, though, you may need to first get through the financial issues this pandemic has brought with it.
Don’t worry. You don’t have to start this journey alone. Here are a few tips to help you beat the effects of COVID-19 on your bank account.
What’s Ahead:
Negotiate your bills
You may not realize it, but your bills aren’t set in stone. You can negotiate your balance, monthly payments, and other aspects of your debts. Think about it. Your creditors would much rather you pay something each month than nothing at all.
Pandemics, fortunately, are rare. That means your creditors are well aware that many people are going through financially tough times right now. Yours won’t be the only call they’re getting from consumers eager to negotiate.
Here are a few tips to help your call go smoothly:
Before you start calling around, gather your most recent bill and have everything in front of you.
If you have a history of paying on time, point this out.
When negotiating with a creditor that has competitors, stating that you’ve found a better deal and you’re thinking about canceling can sometimes be effective.
If the person on the line can’t help you, ask to speak to a manager or supervisor who can.
Pay close attention to the offer the representative gives. Many are trained to make it seem like you’re getting a good deal when they’re actually increasing your bill long term.
You don’t have to go it alone when it comes to negotiating your bills. There are now apps that will handle the process for you. One of those solutions is Trim, which automates bill negotiation. Simply link to your various accounts and Trim will look for savings, starting by suggesting subscriptions you can cancel to save money.
But the bill negotiation feature is where Trim really comes in handy. Trim will interact with the customer support team at your various service providers and negotiate on your behalf. They work with many of the top cable companies, as well as phone and medical providers.
Refinance your loans
What’s your biggest expense? Chances are, it’s your housing. Whether you rent or own your place, that monthly payment can really hit hard when money’s tight.
For that reason, one of the best things you can do is cut that payment down a little. If you rent, have a talk with your landlord about a rent reduction or a brief break while you get back on your feet. But if you have a mortgage, that won’t be so easy. You can contact your lender and negotiate a temporary break in payments, but that just delays your debt a couple of months.
This could be a great time to refinance your loans to reduce your payments. That applies not only to your mortgage, but also personal and student loans. Approval will still depend on your credit score and income situation, but it’s worth shopping around to see if refinancing is an option.
Ready to refinance? Here are some options to consider.
Mortgage refinance
Refinancing a mortgage has traditionally been a time-intensive exercise that requires stacks of paperwork. Not anymore. With online lending, you can typically complete most of the process online.
If you need a little extra cash, a cash-out refinance may be an option. If you have substantial equity in your home, and interest rates have fallen, you may be able to reduce your monthly payment while also taking out some money that you can put toward other expenses.
You can see how much you qualify for with MU30’s Mortgage Cash-Our Refinance calculator below:
Student loan refinance
Student loans can be a big burden on your finances. In fact, the average monthly student loan payment is $393, and it can be tough to negotiate that down, especially if you have government loans.
You may not realize you can refinance your loans with a private lender, even if it’s a federal or ParentPLUS loan. Many private lenders are also more flexible in repayments, including letting you defer your payment for a month or two during tough times.
Credible shops multiple lenders to find the best deal on your student loan refinance. With one quick application, you’ll get rate quotes from up to ten lenders. Best of all, your quote will be turned around in just a couple of minutes. If you see one you like, you’ll complete the application process directly with the lender.
Credible Credit Disclosure – Requesting prequalified rates on Credible is free and doesn’t affect your credit score. However, applying for or closing a loan will involve a hard credit pull that impacts your credit score and closing a loan will result in costs to you.
Credit card debt refinance
Credit card debt can make it tough to get ahead financially. There are a couple of ways you can refinance what you owe on your cards. One is to take out a low-interest personal loan to pay it off. You’ll still owe the money, but you can reduce the interest you’ll have to pay on it.
Another option is to apply for a new credit card and transfer the balance from your existing cards. Some cards have an introductory period where you’ll pay no interest at all. Check the fine print about balance transfers before you choose a card.
Fiona can help you track down a low-interest credit card or personal loan. Answer a few simple questions and you’ll be matched with credit card offers that meet your needs. The process takes less than 60 seconds and if you don’t see an offer you like, simply exit out and shop elsewhere.
Personal loan refinance
If you’ve taken out a personal loan, you may not realize you can refinance it. Yes, even if your loan was to pay off previous debt, you can always go back in for a better deal. You may find out that you can lower your payment and improve your terms by doing that.
LendingTree takes a different approach to connecting you with a loan. You’ll answer some questions about your goals and get recommendations for lenders who can meet your needs. LendingTree provides competing offers from a variety of lenders and even lets you contact lenders directly to negotiate a lower rate.
If you’re struggling to find loan refinancing due to your credit, Self Credit Builder Loans can help. Not only will they work with you to get you the money you need, but your repayments are reported to the three credit bureaus. Simply pay on time each month and you’ll be on the road to a better credit score.
Renegotiate your insurance premiums
Insurance is a necessary part of keeping yourself and your belongings protected. But COVID has shifted priorities, especially when it comes to vehicle insurance. If, like many consumers, you’re driving far less than you did pre-pandemic, it could be time to adjust your coverage.
With insurance, it’s not about picking up the phone and making a call to negotiate. Instead, the best thing to do is shop around and see what other insurers can do for you. Sure, you can try adjusting your coverage to see if that helps your premium, but often another insurer will give you a better deal.
Use a budgeting app to cut expenses
Budgeting is always a great way to stay on top of your finances. When you’re pre-planning how each dollar will be spent, you’re in control. If you normally budget, your approach may need to be adjusted for COVID-19. If not, this is a great time to start.
When you budget, you’re making a plan, but the best plans are built using the most information possible. Before you start budgeting, go to your online banking site and pull a report listing your expenses. You may even want to pull multiple months to get the most accurate picture possible.
As you review the report, prioritize your expenses. What’s most important? Chances are, you’ll need to put the basics first: food and shelter. Are there areas you can trim back? You may want to find ways to reduce your grocery budget, for instance, even if you’re no longer spending money on expensive coffee and restaurant food.
Once you have a budget in place, your work still isn’t finished. You’ll need to track your spending to get the information you need to make next month’s budget. PocketSmith monitors your spending and provides insight into where your current habits will lead you in the future. You can project six months, a year, or longer and adjust today’s spending accordingly.
Take a look at your credit cards
Normally, you’d want to work on paying off your credit cards, but now may not be the time. If you do have to rely on your credit cards to get you through, try to use them as little as possible.
One small thing you can do to reduce expenses is to lower your interest rate. You can try negotiating with the card issuer, but it will help if you can cite other offers first. Shop around and find offers lower than what you’re paying. When you call, you’ll be able to cite those rates and boost your negotiating power.
If your economic situation is short-lived, you can alternatively try to get a card with a no- or low-interest introductory period to get you through. During those months, you’ll at least get a break from the interest you’d otherwise pay, which can help you catch up on your bills.
Take advantage of resources
One of the few good things about having a tough time now is that there’s extra help. Realizing that many consumers are suffering, the government has put some programs in place to help.
The top of those resources is the Economic Impact payment of a couple of months ago. You should also make sure you’ve filed your taxes in case the government decides to issue further stimulus payments.
Here are a few other resources available to those who have been financially affected by COVID-19:
If you’re unemployed, make sure you sign up for expanded unemployment benefits.
You can withdraw money from your 401(k) without penalty during COVID-19.
In case you missed it, the government is allowing a temporary suspension of student loan payments through September 30, 2020.
Some banks are waiving fees during the pandemic. Check to see if your lender is on the list.
FEMA has offered relief due to COVID-19, including extending flood insurance renewal payments and offering funding to state, local, tribal and territorial partners.
Consider a financial advisor
The truth is, sometimes you can’t see what you need to do. You’re just too close to the issue. When that happens, it can help to have an outsider take a look at things. If that outsider is an expert, even better.
But when you’re trying to recover from a financial setback, you don’t exactly have an excess of funds to pay a professional. Any financial advisor you’re considering should offer a free, no-obligation consultation. During this consultation, you can ask about fees. Compare multiple advisors against each other to find the best expert you can get for your budget.
One great way to quickly find a financial advisor is through Paladin Registry. You can search a directory of experts in your area and set up an interview to discuss details like fees and credentials. Click on “View research report” on any advisor’s listing to take a look at details like education and licensure information. You can also see the minimum assets you’ll need to have for the advisor to work with you, as well as the compensation structure. Many advisors work on a fee that’s a percentage of your assets.
Summary
Global pandemics may be rare, but life is full of surprises. Soon enough, you’ll find your financial situation begins to improve, and that’s when it’s time to take action. Make sure you have an emergency fund in place and work hard to pay down your debt. That will give you the peace of mind of knowing that you can tackle whatever challenges life brings in the coming years.
Read more:
Self Disclosure: Self Financial compensates us when you sign up for Self Financial using the links provided. All Credit Builder Accounts made by Lead Bank, Member FDIC, Equal Housing Lender, Sunrise Banks, N.A. Member FDIC, Equal Housing Lender or Atlantic Capital Bank, N.A. Member FDIC, Equal Housing Lender. Subject to ID Verification. Individual borrowers must be a U.S. Citizen or permanent resident and at least 18 years old. Valid bank account and Social Security Number are required. All loans are subject to ID verification and consumer report review and approval. Results are not guaranteed. Improvement in your credit score is dependent on your specific situation and financial behavior. Failure to make monthly minimum payments by the payment due date each month may result in delinquent payment reporting to credit bureaus which may negatively impact your credit score. This product will not remove negative credit history from your credit report. All loans subject to approval. All Certificates of Deposit (CD) are deposited in Lead Banks, Member FDIC, Sunrise Banks, N.A., Member FDIC or Atlantic Capital Bank, N.A., Member FDIC.
Owning a house is everyone’s dream. We all work hard in our lives to achieve our dreams. However, it is not easy today to buy a house in metro cities. Prices of residential real estate units have gone up like anything. It is nearly impossible to pay the full price of the house unless one has huge savings already. For a middle-income earner, the only visible choice is taking a home loan and paying it back over the years. Applying for a home loan has its own set of rules and requirements.
In this article, we are going to discuss all you need to know about joint home loans. As the name simply suggests, a joint home loan is a loan which is taken jointly with another person, usually spouse or parents. There are multiple reasons as to why people apply for joint loans rather than individual loans, some reasons are:
Increased loan eligibility: When two people apply for a home loan together, their combined income is used to calculate the loan amount. This can lead to a higher loan amount being approved, which can be helpful if you are looking to buy a more expensive home.
Creditworthiness: This applies to all types of loans, the lenders always check your credit score before deciding the eligibility in terms of loan amount, tenure, and interest rate. It is easy to avail the loan if you have a strong credit history in terms of timely repayment.
However, if your credit history is not very strong, a co-applicant can be added to the loan proposal so that bank can have additional comfort about the loan proposal and there would be two people involved in repaying the loan rather than single person exposure.
Shared responsibility: When you take a home loan jointly, both borrowers are equally responsible for repaying the loan. This means that if one borrower is unable to make a payment, the other borrower is still obligated to do so. This can be a good option for couples or other partners who want to share the responsibility of owning a home.
Lower interest rate: Some lenders offer lower interest rates on joint home loans. This is because they are considered to be lower-risk loans, as there are two borrowers who are responsible for repaying the loan.
Tax benefits: As per the income tax regulations, joint home loans allow both co-borrowers to claim tax benefits under Section 80C as well as Section 24.
Section 80C: Amount of principal repayment can be claimed under this section up to Rs. 1.5 lakhs per annum by each of the co-borrowers.
Section 24: Amount of interest paid as a component of EMI can be claimed under this section up to Rs. 2 lakhs per annum by each of the co-borrowers.
There are also multiple disadvantages of having joint home loan, some of these are:
Default by a co-borrower: If one borrower defaults on the loan, the other borrower may be held liable for the entire amount. Additionally, the credit score is affected negatively for both the borrowers even when another co-borrower has been paying on time.
Separation: Usually the joint home loans are availed by married couples. This can raise all sorts of legal problems if the co-borrowers are married to each other and get separated by divorce even as the home loan remains to be repaid. To further complicate the issue, If the property is registered in the name of one co-borrower, then after the loan has been fully repaid, he/she will become the rightful owner even if the other co-borrower has also paid their share of the EMIs.
Credit score: Default by any one of the co-borrowers affects the credit score of all the borrowers. This impairs the ability of a genuine borrower to borrow in future.
Few things that should be kept in mind before applying for a joint home loan:
Do not apply for a joint loan just for the formality. Usually, banks ask for a co-borrower just to reduce their risk. However, if your credit score is decent and your income eligibility allows for a required loan amount then you should not involve a co-borrower unnecessarily just for the sake of formality.
Do not apply for a joint loan just for the sake of tax deduction. Dual tax deduction might sound tempting but in case of separation or disputes, it could affect the title of property and make it difficult to sell due to legal complications.
Do not apply for a higher loan amount just because you can do it with the help of a co-borrower. Always keep in mind that the EMI amount should be well within a reasonable limit that can be paid out in due course. Once you borrow money from a bank, there is no turning back.
Rohit Gyanchandani is Managing Director at Nandi Nivesh Private Limited
As per RBI data, home loans grew 8.4% between March and October, faster than the preceding six month period during which there were no hikes.
Only after you have gotten in the habit of making regular increased payments towards your debt should you begin exploring other debt elimination tricks like debt negotiation and debt consolidation. All of the shortcuts in the world can’t help you get out of debt if you do not first develop the self-discipline to live within your means and devote additional income to paying down your debt.
This next part of my Debt Free in Seven Steps system is to find these short cuts that can help you get out of debt faster–and for less.
Step Four: Negotiate interest rate reductions from your creditors and/or consolidate balances in lower rate accounts.
What’s Ahead:
First, call your card companies!
The first step anybody with credit cards should take is to request an interest rate reduction from your credit card companies. Why in the world would a credit card lower my interest rate? Four times out of five they might not. But if you ask, and ask again, they will likely give you a rate cut to keep you as a customer. If you haven’t noticed your mail box overflowing with “pre-approved credit card offers”, the consumer lending industry is lucrative but it’s also competitive.
Call your credit card’s 800-number and just ask to have a lower interest rate. Tell them you received balance transfer offers and will take your balance elsewhere if you can’t get a better rate. If they say no, ask to speak with a supervisor. If that proves fruitless, call back again tomorrow. Most credit cards will eventually lower your rate if you harass them, and it’s a move that will save you hundreds if not thousands of dollars.
This debt negotiation tactic will work best if you are in good standing and don’t have a number of late payments in the last year. If, however, you are being charged a higher interest rate or “penalty APR” because of your late payments and are now paying on time, call and request a return to your usual rate. Most creditors will not refuse such a request from somebody who is paying in good faith.
Balance transfers
If your credit score is good, you may be able to qualify for one or more credit cards with 0% balance transfer offers for a year. Compare and apply for balance transfer credit cards and move high-rate balances onto the 0% card. Do NOT, however, use the new cards—or the old ones for that matter—to make new charges. Cut ’em up. The point of getting the new credit cards is only to save money on getting out of debt.
Debt consolidation
Another tool at some debtors’ disposal is debt consolidation, or the process of moving two or more credit cards or loans into a new loan, usually with more favorable terms like a lower interest rate. Mortgage lenders frequently advertise mortgage refinancing and home equity lines of credit as debt consolidation options, and introductory-rate credit cards make balance transfers a tempting debt consolidation option.
Be careful, however, with debt consolidation. Most people are in debt because at some point they spent beyond their means. Consolidating debt frees up credit and lowers the minimum debt payment you make each month, making it tempting to loosen your spending belt a bit. A few months of a dollar hear and two dollars here can add up quickly to yet another ugly debt.
If you decide to consolidate debts into a credit card balance transfer, for example, cut up your old credit cards and do not activate the new card—use it only to carry the transferred balance. The less available credit you have at your disposal, the less likely you are to backtrack.
Moving on…
Once you have taken advantage of any debt negotiation or debt consolidation techniques, it’s time to move onto Step Five: Automate Your Debt Payments. Or, check out all the articles in my Debt Free in Seven Steps system.
You’ve got an apartment. Now you want to be sure and get the rent paid on time each month. That way, you won’t incur late fees, wreck your credit rating, or damage your relationship with the management (you’ll probably need them at some point down the road).
Six great ideas for keeping that rent paid on time:
Set a calendar item in your phone for three days prior, with alerts one and two days before that. Then if you have to get the funds together, you’ll have a chance to round it up and get it paid.
Better still: set up an automated payment from your checking account. Be aware, however, that these payments can take several days to generate. So if your rent is due on the 1st, best to set it up for the 20th-24th. You can inquire when the money is actually received.
Set up a savings account to automatically transfer funds to your checking account, so if it’s short of funds, the savings will cover it. Throw any extra cash or unexpected windfalls into your savings account.
Add a “pay the rent” note to any wall calendar or Daytimer, for the 26th of each month. (And buy a box of envelopes and a book of stamps to have on hand if you actually mail the rent).
Ask your management company if they can auto-deduct your rent using a credit or debit card. They will keep it on file, so you might inquire how that is securely done. It could be risky to have your card numbers on a piece of paper in the manager’s file cabinet.
Look at your lease and find out what the late fee is. Think of all the things you could do with that money instead, from a treat at Starbucks to a new piece of décor for your home.
Can you think of other ways to make sure the all-important task of paying the rent happens on time? We’d love to know them. Please share your comments!