How Rent to Own Homes Works

Rent to own home is also known as rental-purchase. Rent to own homes is also one of the best and successful strategies which are adopted in the market today. The rent to own home transactions began in the UK and Europe. It first appeared in the United States during the 1950s and 1960s.

In rent to own contract, the buyer agreement with the seller to rent the home for a set amount of time(usually one to three years), after which the buyer can purchase the house from the seller when or before the lease expires. This is the basic contract of rent to own home. In rent to home, no two rent to own contracts are alike.

Rent to own is not as simple as paying rent. Certain terms and conditions must be met, according to the agreement. But rent to own contract can be a good option for people who are financially ready but want to become homeowners. It will be profitable for the buyers if they will be ready to make the purchase when the lease term expires.