Five Things To Watch For When Renting To Own

Rent to own homes are a fantastic solution for many home buyers. Whether you are purchasing your first home or whether you are looking for investment opportunities using alternative financing, the rent to own option has a lot to offer.

Like any form of financing, there are a few things that you must be aware of before you dive in headfirst to rent to own home buying. Financing a home purchase can be a very complicated and confusing endeavor for those who have never done it before, which is why we have put together this article.

By reading the information in this article you will be able to avoid some of the major pitfalls that befall buyers who are getting involved in the rent to own financing option.

Unscrupulous Home Owner

The major difficulty with the rent to own financing option is that 99% of the time this financing takes place directly with the home owner. While there are many government controlled financial regulations placed on banks who hand out mortgages, there are few regulations on homeowners who offer peer-to-peer financing solutions such as rent to own.

Unfortunately, there are some homeowners who (whether by choice or by financial ignorance) set up financial situations between themselves and the tenants that are unrealistic, expensive and often end badly. In order to avoid a situation in which you, as the future tenant of a rent to own house, are taken advantage of, be aware of everything that is going on. You need to know exactly how much you are being charged, what you are being charged for and how long you will be charged for it.

Unrealistically Low Prices

It is true, that in most cases homeowners who are offering a rent to own option on their house are typically trying to unload their home as soon as possible. The rent-to-own option is becoming more and more popular as the housing market continues to slump and more homeowners are needing to sell their homes.

The main problem is that some homeowners set unrealistically low prices in order to get tenants into the rent to own option. These homeowners then quickly realize that the low price at which they are trying to sell their home will not meet their own financial break even points and may try, not often successfully, to raise the price on the tenant mid-contract.

Even though it is very rare that a homeowner can actually raise the price on a tenant mid-contract, the legal battles, stress and the worry that come from a landlord trying to increase price can be enough for some to avoid rent-to-own options altogether. For this reason, if the deal sounds too good to be true, it probably is. You must be realistic about housing prices.

No Contract

Home financing is a big deal. There is a lot of money at stake and sometimes money makes people do things that they wouldn’t normally do. For this reason you must protect yourself and the homeowner by getting everything in writing.

In many small claims courts a simple document signed by both parties will suffice for many lawsuits. That being said, if you are able to notarize any contracts by a certified public notary, you can assure yourself highest-quality of legal insurance possible.

Unrealistic Landlord Expectations

Some landlords expect their tenants to make improvements on the home while they are in the renting portion of the rent to own financing option. This is unrealistic. If you have not purchased the home, you are not responsible for making upgrades to that home. Since most rent to own financing options have an end date to the rent option of the contract, you are not held responsible for making upgrades to the property.

No Exit Strategy

Before you get into the rent to own financing option, consider an exit strategy. What happens if you don’t like the home? What happens if you can’t come up with the money for a mortgage? What happens if you can’t repair your credit in time?

These are all questions that you must have answers to before you enter into a rent to own agreement.


The rent-to-own financing option is a great option for many homeowners. Follow these five simple tips to avoid any undue stress or financial hardship on yourself.

We encourage you to check out some of the rent-to-own options that are available on our website at


  1. marc geuther says:

    Good article. I am dealing with some of these issues as well.

    • Hey Marc sorry I didn’t respond to you much sooner, somehow I didn’t get a notice of your comment.

      I know it’s been a long time, but if you get a chance, would you mind posting about the issues you were having? Also, what was the end result?

      I’m hoping you were able to avoid any major issues! Let me know if I can help with anything!

  2. Great web site you have got here.. It’s difficult to find excellent writing like yours nowadays. I truly appreciate individuals like you! Take care!!

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