home

What exactly is "rent-to-own"?

Rent-to-own homes allow the buyers to invest in their homes by paying a specific, set amount each month to live in the home. At the end of the agreed leasing timeframe, the buyers will have the option to purchase the home.

How is "rent-to-own" different from simply renting?

When you choose to rent-to-own, the deposit you make will go toward your down payment at the end of your agreed leasing timeframe (if you decide to purchase the home). Additionally, a portion of your rent will typically be credited back to you at the time of the purchase. However, if instead you choose not to purchase the home at the end of the period, you will not be credited back any money.

Who chooses "rent-to-own"?

Potential buyers included:

People who are looking to improve their financial report during the leasing timeframe.
Renters who want to take the home for a test drive, or are looking for a specific area or school district before committing to purchase the home and stay long-term.
Renters who are trying to look toward home ownership and looking to the financial freedom of owning, instead of continuing to rent.

What are the benefits of "rent-to-own"?

You can have the ability to purchase your dream home before any other party while at the same time building or fixing any financial dilemmas that could potentially hold you back from purchasing it at that time.
You have "no obligation" to purchase the home, so you are able to walk away from the house at the end of the lease term without feeling pressured to buy it.
You learn the responsibilities of taking care of a home.
You know that 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 if you choose to purchase the home.
The rent-to-own agreement freezes the price of the property where it is so you will not see a price increase or decline during the lease period, which could potentially help with equity gains at the time of purchase.

Am I required to buy the house at the end of the lease period?

Not at all. When the leasing timeframe, you have the option to walk away or purchase the property. It is totally up to YOU!

Will my down payment and monthly rent be credited back to me if I decide not to purchase the property at the end of the leasing timeframe?

No. Unfortunately, both the down payment as well as the monthly rent is non-refundable.

What exactly is an option fee?

An option fee is not the same as a security deposit. The option fee is paid at the beginning of the leasing timeframe and is what allows the renter to have an "exclusive right" to the home at the end of the leasing timeframe to decide whether to purchase or not to purchase the property.

Do "rent-to-own" homes allow me to have pets?

Many properties will allow you to have pets, but it will be specified in the agreements. Sellers will typically ask for "pet rent" policy be added to the monthly leasing agreement. "Pet rent" can vary anywhere from $25-100 per month, depending on the property itself.