Rent-to-own houses allow buyers to invest in their homes by paying a set amount
each month to live in the house. At the end of an agreed leasing period, the buyers
have the option to purchase the home.
No. Rent-to-own has actually been around for more than sixty years, but it is
becoming more and more popular. Since it is more difficult now to go through the
loops of obtaining a loan and purchasing a home right away, rent-to-own is a good second option.
Potential buyers included:People who want to improve their financial report over the lease period,
Renters who want to test a home, area or school district before committing to purchase and stay long-term
Renters who are trying to look toward home ownership instead of continuing to rent
When you rent-to-own, your deposit will go toward your down payment at the end of your
agreed period if you decide to purchase the home. Also, a portion of your rent will be credited
back to you at the time of the purchase. If instead you choose not to purchase the home at the
end of the period, you will not be credited back any money.
You can have the priority of purchasing your dream home before any other party while building or
fixing and financial dilemmas that could potentially hold you back from purchasing it
You have no obligation of purchasing the home, so you can walk away from the house at the end of
the lease term without feeling pressured to buy it
You can learn the responsibilities of taking care of a home
Your money won't go to waste because a portion of your down payment and monthly rent will be
credited to the purchase at the end of the period
The rent-to-own agreement freezes the price of the property so it will not rise or fall during
the lease period which could potentially help with equity gains
No. At the end of the lease period, you have the option to walk away or purchase the property.
No. Unfortunately the down payment and monthly rent is nonrefundable.
The seller maintains full insurance and pays the property taxes, HOA dues and other necessary fees.
An option fee is not the same as a security deposit. The option fee is paid at the beginning of
the lease period and is what allows the renter to have an exclusive right at the end of the period
to decide whether or not they want to purchase the property.
Most properties will allow you to have pets, but is specified in the agreements. Sometimes
sellers will ask for "pet rent" to be added to the monthly rent. "Pet rent" can vary from $5-20 per mon