What are Rent to Buy Homes?
Rent to buy homes may also be called rent to own or lease option homes. There are some differences between contracts on each of these that should be noted. Disadvantages and advantages of rent to buy homes or lease option homes need to be duly considered prior to making this type of arrangement with a landlord. In a rent to buy home scenario, a potential renter makes a deal with a landlord to purchase the house by a set date at the current market value. During the time the renter is paying rent, they also need to be saving for their deposit. In some cases, especially in rent to own or lease option situations, the renter not only has this arrangement with the landlord, with an option to later purchase the property, but pays extra rent which will constitute a portion of the deposit on the house when the house is purchased. Instead of simply having an agreement to buy the house at a set price, the renter is actively contributing towards the purchase of the home through extra payments. Whi
