Rent-to-own

Did You Know You Can Own a Home by Renting?

Yes — through a Rent-to-Own agreement, tenants have the opportunity to become homeowners while they are still renting.
This arrangement allows you to live in your future home today, pay monthly rent, and later use part of that rent as credit toward the purchase price.

It’s a smart pathway for people who:

• Don’t yet qualify for a mortgage,
• Want time to save for a down payment, or
• Prefer to “try out” the home before committing to buy.

Rent-to-own (also called lease-to-own or lease-option) is an emerging trend in the real estate market that blends renting and homeownership. It is increasingly popular in markets where property prices are rising faster than income growth, making it difficult for people—especially first-time buyers—to access mortgages.

What Rent-to-Own Means

In a rent-to-own agreement, a tenant rents a property for a specified period with the option (or obligation) to buy it at the end of the lease. Part of the monthly rent may be credited toward the purchase price, helping the renter accumulate equity before formally becoming a homeowner.

Quick overview

1. Lease-Purchase (Obligation): tenant must buy at lease end — more binding for the tenant, less risk for the sellerHow It Works (Step by Step)
2. Agreement Signed
   • Tenant and landlord sign a lease-purchase contract stating:
     • Agreed sale price (fixed or based on appraisal)
     • Lease duration
     • Monthly rent
     • Purchase date
   • It clearly states that purchase is mandatory when the lease ends