RTO Program Costs/Fees Back
Monthly RTO Payments **Estimates Only**
The RTO Buyer will be required to make monthly payments. When making RTO payments the RTO Buyer will be paying:
Once the RTO program is successfully completed and all RTO payments are made as agreed, a portion of the rent paid (about 20%) will go towards, reducing the purchase price of the house or assistance towards money needed for closing cost at settlement.
The RTO Buyer will be required to make monthly payments. When making RTO payments the RTO Buyer will be paying:
- Monthly Rent – This is your monthly rent payment.
- RTO Savings – This money will be put in an escrow savings account. This money will be applied to the closing cost money you will need to pay at settlement. This may not cover all of your closing costs.
- Account Management Fee (shared w/ the owner) – This is a fee charged by the property management company for managing your account monthly, assuring you are on the path to completing the RTO program successfully, completing routine housekeeping inspections, and answer any questions you may have through the process. Premier Property Management (PPMG) will handle the property and account management; there is a monthly fee for these services. The RTO Buyer and Owner will be sharing this cost, unless another arrangement has been made between tenant and landlord.
Once the RTO program is successfully completed and all RTO payments are made as agreed, a portion of the rent paid (about 20%) will go towards, reducing the purchase price of the house or assistance towards money needed for closing cost at settlement.
| House Value | $450 K | $400 K | $350 K | $300 K | $250 K | $200 K | $150 K | $100 K | $85 K | $70 K | $55 K | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Monthly RTO Payment | $3,821 | $3,714 | $3,427 | $3,184 | $2,732 | $2,090 | $1,575 | $1,140 | $1,013 | $865 | $725 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Money Needed to Move-in **Estimates Only**
(**Deposit Money, First Months Rent and RTO/Home Buying Expense Fees**)
The below examples of deposit money and monthly RTO payment amounts are based off the value of the house.
| House Value | $450K | $400K | $350K | $300K | $250K | $200K | $150K | $100K | $85K | $70K | $55K | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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| Deposit Money *1 | $5,500 | $5,000 | $4,500 | $4,000 | $3,500 | $3,000 | $2,500 | $2,000 | $1,600 | $1,350 | $1,000 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Monthly RTO Payment | $3,821 | $3,714 | $3,427 | $3,184 | $2,732 | $2,090 | $1,575 | $1,140 | $1,013 | $865 | $725 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Program Exp. Fees *2 | $940 | $940 | $940 | $940 | $940 | $940 | $940 | $940 | $940 | $940 | $940 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| $ Required to Move-In | $10,261 | $9,654 | $8,867 | $8,124 | $7,172 | $6,030 | $5,015 | $4,080 | $3,535 | $3,155 | $2,665 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NOTE: To get the total money needed to move in to your RTO home, you will need to add $940 (Program Expense Fees) + Deposit Money + Monthly RTO Payment.
*1
Deposit Money - RTO Buyer(s) will be required to put a deposit down of about 3% of the purchase price of the property to start the program. This deposit money will be used like a security deposit during the rental period and then will be transferred to closing cost money at settlement. If the tenant is not able to successfully complete the RTO program and purchase the property, the deposit money will be used to correct any property infractions, resolve any account balance that may be owed, and the owner has the option of keeping the remaining deposit money (depending on the reason for break in contract) for loss of marketing time during the RTO process. (Contant Amber for more detail).
Deposit Money - RTO Buyer(s) will be required to put a deposit down of about 3% of the purchase price of the property to start the program. This deposit money will be used like a security deposit during the rental period and then will be transferred to closing cost money at settlement. If the tenant is not able to successfully complete the RTO program and purchase the property, the deposit money will be used to correct any property infractions, resolve any account balance that may be owed, and the owner has the option of keeping the remaining deposit money (depending on the reason for break in contract) for loss of marketing time during the RTO process. (Contant Amber for more detail).
*2
RTO Program Expense Fees
Home Warranty* $500
Renters Insurance** $140
Agent House Finder Fee $100
RTO Document Preparation Fee $200
Total $940
RTO Program Expense Fees
Home Warranty* $500
Renters Insurance** $140
Agent House Finder Fee $100
RTO Document Preparation Fee $200
Total $940
* Home Warranty You will be required to hold an active home warranty policy on the property to assist with some major repairs/replacements. You are more then welcome to choose a home warranty company of your choice.
**Renters Insurance You will be required to hold an active renter's insurance policy while completing the RTO program.
**Renters Insurance You will be required to hold an active renter's insurance policy while completing the RTO program.
Additional Optional items:
RTO Document Recording
You can choose to have your RTO paperwork recored with the recorder of deeds at the courthouse. This will show you have financial interest in the property while you're renting. The starting cost for this is about $150.
Inspections Options