What are the Benefits of Rent to Own over Traditional Renting?

No one can dispute that the economy has softened in recent times. These days, getting a mortgage has become much more difficult, making buying a home all the more troublesome. Well, with a rent to buy situation, you can still get the home of your dreams.

On the flip side, if you are a home owner, and you have been trying to sell a place for a long time, you might want to think about offering buyers a lease purchase option. From the point of view of sellers and buyers, rent to own options make sense. With a rent to buy, everyone can win.


As the seller, you get someone to move into your vacant house. That means it starts to generate income for you. Now, granted, it may not be much - only enough to cover your monthly mortgage payment, but that is all you really need. And, consider the alternative: an empty house is very tempting to vandals and thieves.

Without someone living in your place, much needed repairs may not get done; the elements might start to chip away at the place - and with it, your equity. By putting a tenant in there, you forestall all such events from ever occurring.

Then there is yet another reason for offering someone a rent to own option: a lack of equity. If your home's value barely covers your mortgage, you may not be able to sell it for a good price. You could sell it and find yourself coming away form the deal with next to nothing.

Not a good idea. Yet, if you rent the place, and give the renter a lease purchase option, then that gives your home time to appreciate in value. If the tenant likes the idea of a rent to buy, and rents for a year or so before coming up with the down payment, your home's value will go up, and the mortgage will go down.

Also, consider this: very few homes get put on the market with a lease purchase option. So many sellers just want to sell and be done with it. Well, that is all well and good when buyers can get a mortgage. But, for those who can't, yet still can make the monthly payments, they will welcome a rent to buy offer.

The key to making a rent to buy situation work is careful screening of the tenant / buyer. Now yes, this is more time-consuming than just selling, but if you truly feel a rent to buy is the best way for you to go; then putting forth a little effort to ensure your home stays safe is well worth it.

In the end, you’ll sell your home at a good price, and know it went to a good buyer.


For buyers, rent to own options provide a cheap way to own the house of your dreams. You are making an investment each month as the money you pay in rent is taken off the eventual property price, instead of being dead money as in traditional renting. Also, the price of your house will be fixed, and that will be at a lower price with housing markets as they are. In time, the chances are that your home will be worth more, but you won't have to pay more!

The time you get to pay into your home allows you to build credit, so that borrowing money at a later date will be easier and cheaper. You don't even have to buy the property you're in at the end of your lease period.

The choice remains yours.

Therefore, to own deals have many advantages over traditional renting, for both the buyer and the seller and they allow far more people to get their first step up onto the property ladder.

Make sure you check out the http://www.aussiewrapper.com.au for more update information on "Wrapping Property For Cash Flow!"

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To Your Success
Paul Zalitis
The Aussie Wrapper


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