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Rent to own properties, while more difficult to find in a hot real estate market, present a viable option for buyers with credit challenges or low down payment funds. This approach also can benefit sellers having difficulty selling a property to realize a benefit from a rent-paying tenant while moving forward on a future sale.
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Rent-to-own agreements, also called lease-to-own agreements or lease-options, are traditional leases agreements that also give the tenant an option to purchase the rental property, typically a single-family house, sometime after the beginning of the tenancy.
In a rent-to-own agreement, you (as the buyer) pay the seller a one-time, usually nonrefundable, upfront fee called the option fee, option money, or option consideration. This fee is what gives you.
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