Frequently Asked Questions
Find answers to common questions about our rent-to-own programs and services.
How does the rent-to-own process work?
The rent-to-own process involves finding your dream home and entering into an agreement with 3minus1 Realty Ltd. We provide the financial backing for the property, allowing you to rent it while working towards homeownership.
What are the benefits of rent-to-own?
Rent-to-own offers several benefits, including the ability to live in your dream home while saving for a down payment, the opportunity to build equity, and the flexibility to test out the property before committing to purchase.
How long is the rent-to-own agreement?
The length of the rent-to-own agreement can vary depending on individual circumstances. It typically ranges between 3 or 5 years. The longer the term, the lower the rent. Once great advantage of our programs is that rent never increases for the entire duration of the rent-to-own tenancy term. This allows you to budget with confidence!
How do I apply for the rent-to-own program?
If you would like to apply for our rent-to-own programs, start by submitting your application online on the Apply Now page. Once the form is submitted, our team will contact you for more information or to request supporting documents.
Once my online application is submitted, what's next?
If you've already submitted your online application for our rent-to-own programs, we'll send you an email for next steps. If we require more information about anything you've indicated on your application form, we'll let you know. Otherwise, we'll simply ask you to submit supporting documents so we can get a better understanding of your current financial situation.
What are the supporting documents required after submitting my application form?
Once your online application is submitted, we'll contact you to provide supporting documents. Those documents include:
- Two most recent paystubs
- Notice of Assessment/Re-Assessment for two most recent tax years
- If self-employed, a copy of T2125 Statement of Business Activities
- Most recent bank statement or an account balance printout
- Copy of your Credit Bureau Report
How do I get a copy of my Credit Bureau Report?
- Equifax provides a free Credit Bureau Report here: Equifax Consumer Credit Report
- TransUnion provides a Consumer Disclosure Report here: TransUnion Consumer Disclosure Report
What if I've been through severe financial hardship, or have declared bankruptcy in the past?
Every tenant's financial situation is different, and we are here to help. Our mission is to make homeownership a reality for everyone. Our rent-to-own programs are flexible to your needs, and we are here to guide you through the entire process.
What happens once I submit my rent-to-own application and supporting documents?
Once we've reviewed your rent-to-own application and supporting documents, we will submit your information for review by our team of financial experts. We are considerate of everyone's financial history, and our goal is to make the rent-to-own process a positive and memorable experience.
My application is being reviewed. What's next?
It usually takes us 2-5 business days to review rent-to-own applications. Once the review process is complete, we will contact you with your approval status.
What are my responsibilities if my rent-to-own application has been approved?
If your rent-to-own application has been approved, you should confirm your approval within 10 days. You do this by sending us a signed copy of the approval notice and paying the administrative fee ($1,000). Once you've confirmed the application approval, you're ready to start looking for properties with our team of real estate experts. The administrative fee gives you 6 months to search for properties with our team of real estate experts. If you find a property and sign a rent-to-own agreement with us within that timeframe, the full amount will be applied towards your Option Fee.
Once I'm ready to start searching for properties, do I get to choose my own real estate agent?
Most of the time, we purchase rent-to-own properties without having physically seen them. For that reason, we heavily rely on our partners to find the right property for everyone. During your property search, you will work with real estate experts from RE/MAX One Group. Using real estate professionals that we have selected means they are knowledgeable, aligned with our processes, and dedicated to ensuring an outstanding experience for everyone.
Is the application fee refundable?
The application fee is non-refundable. It provides you with 6 months of searching for properties with our team of real estate experts. If you find a property and sign a rent-to-own agreement with us within that timeframe, the full amount from the application fee will be applied towards your Option Fee.
What is an Option Fee?
In a rent-to-own scenario, the Option Fee is a one-time, non-refundable, upfront payment made by the potential buyer (tenant) to the seller (landlord). Upon successful completion of a rent-to-own tenancy agreement, the Option Fee grants the tenant the option to purchase the property at the end of the rent-to-own tenancy term, at a predetermined price.
Is the Option fee refundable?
The Option Fee is non-refundable. Upon successful completion of a rent-to-own tenancy agreement, the Option Fee is applied as a no cash value credit towards the repurchase of the rent-to-own property. However, if the tenant does not successfully complete the rent-to-own tenancy, the Option Fee is forfeited in full. In addition, the Option Fee is used to calculate your monthly rent. The higher the Option Fee, the lower the rent.
Who owns the property during the rent-to-own tenancy?
During a rent-to-own tenancy, 3minus1 Realty Ltd. is the owner and landlord of the property.
Why is rent higher in a rent-to-own tenancy?
You might think rent payments are high on a rent-to-own tenancy, but it's all part of the way we help our tenants. Upon successful completion of a rent-to-own tenancy, we provide a no cash value credit towards the downpayment on the repurchase of the rent-to-own property. However, if the tenant does not successfully complete the rent-to-own tenancy, that amount is forfeited in full.
Do you provide rent-to-own tenancy outside of Manitoba?
Although we would love to expand to other provinces throughout Canada, our operations are currently limited to the province of Manitoba, with a heavy focus on the city of Winnipeg, and surrounding areas.
What is the minimum Option Fee I can provide?
The Option Fee helps lower rent payments. For most rent-to-own properties, the Option Fee is equal to 3% of the initial property purchase by 3minus1 Realty Ltd. For condominiums, the minimum amount increases to 4%.
Who pays condominium fees during a rent-to-own tenancy?
Since 3minus1 Realty Ltd. is the legal owner of the property during the entire rent-to-own tenancy, we will pay all condominium fees, and charge them back to the tenant as an additional fee on top of the base rent price. We charge the actual amounts that we are billed, so if condominium fees increase during your tenancy, we will adjust the amount accordingly.
Who is responsible for utilities, maintenance, and repairs during a rent-to-own tenancy?
The point of rent-to-own tenancy is to give the tenant the closest experience to home ownership as possible. For this reason, all utilities, maintenance, and repairs are the responsibility of the tenant. We do not provide any compensation whatsoever.
The condominium association requires application fees. Who pays them?
Any time a property purchase requires application fees or fees of any kind, the tenant will be required to pay those fees to us prior to having us pay them to the condominium association. We chargeback the exact fees that were charged to us.
The offer to purchase is conditional to property inspection. Who pays for the inspection?
As the tenant who selected the property, you are responsible to pay for the property inspection and coordinate inspection dates with the real estate agent.
I don't have the Option Fee in full just yet, but I really want to rent-to-own a property. What do I do?
If you need a bit of extra time to accumulate your Option Fee, that's ok. We will simply require a financing condition on the offer to purchase. If no other financing conditions exist, then it will be satisfied as soon as the Option Fee is received in full.
What is the repurchase price of a rent-to-own property?
The repurchase price for a rent-to-own property is based on the price paid by 3minus1 Realty Ltd for the initial purchase of the property. The repurchase price varies based on the tenancy term, but in general, the property repurchase price increases by 5% every year.
Will rent ever increase during a rent-to-own tenancy term?
Our rent prices never increase during a rent-to-own tenancy term. For condominiums, an increase in condominium fees and other fees outside of our control are added to the monthly rent price, and may impact your rent price. We do our best to ensure that our tenants can budget with confidence.
I've completed my rent-to-own tenancy term successfully. What now?
If your rent-to-own tenancy term is nearing completion, we'll be in touch to arrange next steps. You'll need mortgage approval from a bank, and we'll get back in touch with our team of real estate experts, to have you purchase the property from 3minus1 Realty Ltd.
What happens if I decide not to purchase the property?
If you decide not to purchase the property at the end of the rent-to-own agreement, you can simply walk away without any further obligations. However, you will not receive any equity or down payment savings.
Can I make improvements to the property during the rent-to-own period?
In most cases, you are allowed to make improvements to the property during the rent-to-own period. However, it is important to consult with a 3minus1 Realty Ltd. representative, and adhere to any guidelines or restrictions outlined in the rent-to-own tenancy agreement.
What happens if I am unable to qualify for a mortgage at the end of the rent-to-own agreement?
If you are unable to qualify for a mortgage at the end of the rent-to-own agreement, you may have the option to extend the agreement or explore alternative financing options with 3minus1 Realty Ltd.