The Basics of Rent to Own Let’s take a quick look at the advantages of purchasing a home on a rent to own basis:

The Basics of Rent to Own Let’s take a quick look at the advantages of purchasing a home on a rent to own basis: 

1. Low down payment, if any 2. Rent money is working for you (rent credit) 3. Option consideration is credited 4. Purchase price is usually locked in 5. Appreciation 6. Time to check out the house 7. Time to check out the neighborhood 8. Time to clean up your credit and/or obtain the best financing 9. No taxes to pay How it works: In order to fully understand how Rent to Own works, you need to first become familiar with the deal itself from the seller’s, or “landlord’s” point of view.  There are many reasons why an owner would sell their home this way, but several of the most common would be: 1) He/She would like to remain on the deed for the next few years to continue to enjoy tax benefits 2) He/She may be a tired landlord who is at the end of his rope after a string of bad tenants, and would like to acquire tenants who will take care of the property, knowing that they will be the owner someday in the future. 3) He/She would like the freedom of usual management headaches plaguing many property owners As we go on further, you will easily see how the above worries all but disappear when the owner/seller sells their property using the Rent to Own system. Let’s now put down some numbers that would be typical of a Rent to Own deal in the eyes of the seller/landlord. Let’s say Mr. Seller owns a home that is valued at $250,000, based on several “comps,” or appraisals. He owes $200,000 on the home and his mortgage payments are $2,000 per month. He lives in another home on the other side of town and is tired of being the typical landlord, constantly worrying about the tenants, receiving rent too late, or not at all, and is just plain “over” the whole experience.