What You Need to Know About Rent to Own Properties


What is rent to own?

When in a rent to own agreement, the owner of the house is agreeing to sell the house on the market to the buyer at some point, but not immediately. The person trying to buy the home would be renting every month and paying additional dues towards lowering the price of the house. Once the agreed time comes for the buyer to choose whether they want to own the house, they need to decide. It’s not forced, so there are some pros and cons to this.


  • The buyer is not forced into buying the property if he or she changes their mind after living on the property.
  • You can test out the house before committing.
  • People with poor credit can get a rent to own. Within the time they rent the house, they can work on their credit before their big purchase to save money on a mortgage loan.
  • The buyer can lock in the purchase price of what it is listed on the day they got into the rent to own agreement. This means that if the prices of homes in the neighborhood go up, your price will not change. Rent to own agreements usually take a few years so this could save you money rather than starting from scratch in the future.


  • As a buyer, if you decide not to buy the home, you lose all the extra money you put into your monthly payments that went towards the price of the property.
  • If you get into a rent to own with poor credit, thinking that you’ll have it all fixed and qualify for a loan when the time comes, you may not make it. At this point, you won’t be able to buy the house you wanted. Therefore, you need to do research on the credit repair company you want to use before you begin with their services. Many companies will work as slow as possible to get more monthly payments out of you, but Real Clique Credit Repair gives you one set price that protects you from this issue and guarantees to work on 100% of your credit and get things removed as fast as the laws allow.
  • Sometimes house prices drop. If this happens, you’re stuck with the original price of your agreement and you cannot have the house for any cheaper.
  • Depending on your rent to own agreement, missed payments can break your rights to purchase the home.
  • You may not know about title problems on the home you’re buying until the time comes for you to purchase. It’s important to treat a rent to own agreement as you would when buying a home in any other way. Get an inspection and investigate the titles on the house. You don’t want to get blackmailed for a lot of money from someone who owns a portion of the house you just bought, down the line.

Author’s notes:

If you really want to own a home and get all the benefits that comes with doing so, I typically do not recommend this. Rent to own properties can be successful, but it brings a high risk for people who are not financially stable. You may be enticed by the pros, but it is very easy to get scammed, especially if it’s your first time buying a home.

My recommended plan is to temporarily rent a home that is below your monthly budget for a year or so, while you work on your credit at the same time. What this will do is allow you to set aside money every month for a big down payment on the house of your dreams and afford credit repair services. After a year of saving and building your credit, you should qualify for a mortgage loan with the lowest interest rates saving you tens of thousands of dollars on an average 30-year mortgage.

Have professionals inspect the homes you’re looking into buying, investigate the titles, make sure you can afford home insurance and look past small flaws that can be cleaned up for cheap. If you want to save money, buy one of the cheapest homes in the nicest neighborhood you can find and never buy a home that is turn-key ready. All these things will help you get into the best home for the best price, in the fastest way.