Real Estate Community Forum

I am interested in a piece of property. The owner has told me that I can live in the house as a renter and eventually own it as "rent to own". This sounds like an excellent opportunity to own property, but I am clueless on how this works. Does anyone know what types of legal procedures are involved? Are there different types of "rent to own" agreement to choose from? Also what happens if you change your mind and no longer want to own the property? Can you get a portion of your money back? I'm beginning to think there is alot more involved here than I originally thought.

I hate to be a "me too"-er, but I am also interested in how this process works. Some kind of explanation would be great.

If you are seriously considering a lease to own or lease with an option to buy, I highly recommend using a licensed Realtor as these transactions and the paperwork required can sometimes be more difficult to navigate than a simple purchase. If you decide to pursue a "Rent to Own" or "Lease Option" make sure that ALL terms are written down and agreed to by all parties involved. I would also have an attorney review the agreement before signing

I prefer and have used lease options in the past. They seem to be a much simpler transaction in that a deposit is paid up front that gives you an option (length of time is negotiable) to purchase the home at a set price once the lease term expires. The risk is that you change your mind and do not want to purchase the home, you would then lose your option deposit.

Has anyone done a "Rent to Own?" I have heard that disputes can arise when it is unclear how much of the monthly payment is credited towards the negotiated purchase price or how much, if any, of the payments will be credited back if the tenant decides not to buy the home.

Rent to own is like leasing a car and deciding at the end of the lease term you want to buy it at a predetermined amount.

Rent-to-Own homes aka Lease Option to Buy Homes - are an alternative for folks who currently would like to purchase a home but may need time to acquire a down payment or build up their credit rating.

With lease purchase homes or lease option homes, the "option" agreement gives you the right to purchase the rental home within a certain period of time at an agreed upon price. There is also usually an initial "option" amount due upon signing (similar to a rental deposit) and a monthly additionally payment which applies to the purchase price of the lease option home.


Good Luck
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From a seller’s perspective, I’m not very keen on the idea of rent-to-own purchase ( also known as lease-purchase or lease-to-own purchase ). It would be great if the period of time were trouble free and passed smoothly. My experience with rental properties did not go that way.

I owned a small office building with only three tenants. I ended up with a monthly expense to maintain it that would have let me purchase an additional house on that alone. The building was not particularly old, and was fairly well constructed. But the roof found a way to leak, causing interior wall damage that needed fixing. The doors began to malfunction, and being very large metal doors, were expensive and difficult to repair. Simple things like people using the dumpster to get rid of trash made me have to construct a security gate. Every single cost was mine to absorb. Every single repair was mine to handle or hire done. A single family residence would not have the heavy use that an office with 30-plus people moving in and out daily. But there is a roof on every home, pipes that can burst and doors that can be slammed too hard to stay tight on their hinges. A property owner that decides to enter a lease-to-own purchase should be aware that during the period of time until purchase, the people living in the home are renters. If you have no experience being a landlord, that might be the most frustrating time of your life.