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How do I Find Rent-To-Own Housing?

Malcolm Tatum
Malcolm Tatum
Malcolm Tatum
Malcolm Tatum

Rent to own housing is an option that many people use to buy a house. This type of contract is often available in many nations around the world, and can make it possible to purchase a home even if there is not a lot of money for a down payment. If you are interested in the idea of locating rent to own housing opportunities in your area, there are many different affordable options in most communities.

Sometimes referred to as a lease purchase option, rent to own housing is an arrangement that allows the prospective homeowner to lease property with the option to formally purchase the property at a later date. Many of these types of options allow the tenant to rent the home for one to two years, then exercise an option to purchase the property at a pre-determined price. In many cases, all or a significant portion of the monthly rental is applied to the outstanding balance.

Renting to own can be a great option for first-time buyers.
Renting to own can be a great option for first-time buyers.

A good place to begin looking for rent to own housing opportunities is in the local newspaper classified section. Pay particular attention to properties that are advertised as “for sale by owner.” While these generally indicate the owner wishes to sell the property outright, there is a good chance you can work out a rent to own agreement. This is especially true if the property has been on the market for some time.

Property owners sometimes list houses in the local newspaper classifieds.
Property owners sometimes list houses in the local newspaper classifieds.

There are realtors who address the niche market of rent to own housing. Often, this involves screening applicants for home owners, as in any type of rental situation. The difference is that the lease contract includes a clause that allows the tenant to put in an offer to purchase the property at various intervals throughout the life of the lease. Often, the realtor will assist the tenant in securing the necessary financing to make the final purchase. Realtors can also help the tenant to understand the essentials of a land contract or a contract for deed, including the rights and responsibilities associated with agreements of this kind.

Rent-to-own housing can be a path to home ownership for people who do not qualify for a mortgage.
Rent-to-own housing can be a path to home ownership for people who do not qualify for a mortgage.

Property owners who wish to sell some of their real estate holdings may choose to handle the negotiations themselves. Often, these independents advertise directly in newspaper classifieds or in local weekly publications devoted to buying and selling a wide range of items, including property. While this is not always the case, rent to own housing deals like these may also come along with private financing provided by the property owner should the tenant exercise his or her option to buy the house and land.

Rent to own housing is a great way to achieve home ownership, especially for people who are looking to buy their first house. The tenant has the opportunity to live in the home for a period of time and determine if the property and the surrounding neighborhood is ideal for settling down permanently. In the event that the option to purchase is exercised, obtaining financing is normally a simple task that can be worked out in a matter of days.

Malcolm Tatum
Malcolm Tatum

After many years in the teleconferencing industry, Michael decided to embrace his passion for trivia, research, and writing by becoming a full-time freelance writer. Since then, he has contributed articles to a variety of print and online publications, including , and his work has also appeared in poetry collections, devotional anthologies, and several newspapers. Malcolm’s other interests include collecting vinyl records, minor league baseball, and cycling.

Malcolm Tatum
Malcolm Tatum

After many years in the teleconferencing industry, Michael decided to embrace his passion for trivia, research, and writing by becoming a full-time freelance writer. Since then, he has contributed articles to a variety of print and online publications, including , and his work has also appeared in poetry collections, devotional anthologies, and several newspapers. Malcolm’s other interests include collecting vinyl records, minor league baseball, and cycling.

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Discussion Comments

Vincenzo

@Logicfest -- that's not necessarily true. There are real estate agents out there who think of the big picture when it comes to representing clients. They know that if they help someone out today, that person might refer business to them tomorrow. Helping people find those rent-to-own properties is a good marketing strategy when looked at that way.

Logicfest

The problem with using a Realtor to find a rent to own property is that a lot of them simply don't handle those transactions. Generally, a commission isn't generated until a sale takes place, meaning the Realtor works for free unless the renter carries through with the deal and actually purchases the home. Even when that happens, there is no guarantee the Realtor will get paid unless arrangements are made on the front end with the seller.

Quite often, classified will be your best bet for finding one of these properties.

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    • Renting to own can be a great option for first-time buyers.
      By: RTimages
      Renting to own can be a great option for first-time buyers.
    • Property owners sometimes list houses in the local newspaper classifieds.
      By: Feng Yu
      Property owners sometimes list houses in the local newspaper classifieds.
    • Rent-to-own housing can be a path to home ownership for people who do not qualify for a mortgage.
      By: Kurhan
      Rent-to-own housing can be a path to home ownership for people who do not qualify for a mortgage.