Important steps in the rent-to-own process

If you are a potential home buyer who is looking into a rent-to-own contract, don’t get too excited – it’s important to do thorough research prior to signing.   Before you start, you need to have an understanding of how the rent-to-own process really works.  Below we have provided you with a breakdown of the details of every step of the rent-to-own process.

Finding a rent-to-own home.

The first step in the rent-to-own process is finding a rent-to-own home.  When looking at homes for sale in your area, ask sellers if they would consider a rent-to-own agreement instead of a traditional purchase.  You can visit open houses and educate the owners on the benefits of a rent-to-own arrangement.  Alternatively, you can search our extensive database of rent-to-own homes in your area to find the perfect home from an owner already interested in the rent-to-own process.

Negotiating your rent-to-own agreement.

The next step is negotiating your rent-to-own agreement.  Once you have found the house you would like to someday own, it’s time to talk to the owner and begin negotiating an agreement that is favorable to both you and the seller.   You should discuss option fees, monthly rent, the duration of the contract, lock-in price, contract terms and more.  At this point you may want to go through our list of questions to ask before renting-to-own a home to find out more about the home and the owner.

Create your rent-to-own contract.

The rent to own contract is a legal document that defines your unique purchase and agreement with the owner.  Rent-to-own contracts are unique in that many of the items within the contract can be negotiated and tailored to you.  Make sure you have the help of an attorney or other legal specialist when drafting the documents.

Research financing options:

Research how, when, how much, and with whom you will obtain funding if needed.  When the duration of your rent-to-own agreement is up, you will need to come up with the remaining purchase price of the home, or risk losing out on your investment.  You should do this research and have a plan ahead of time to avoid potential pitfalls when the time comes.


Once your contract is signed in front of a Notary Public, and filed appropriately, you are now the proud tenant of a rent-to-own home that will someday be yours.  Congratulations!  It is time to start the process of moving in.