Rent to buy or rent to own homes program allows you to rent a house that you can buy later on a fixed date at the current agreed price.  You will enter into an agreement with the landlord with a different set of terms and conditions which also involves signing a Lease Option. There is a fee for this known as the Option fee. Lease option gives you the right to buy the house but you are under no obligation to buy it. This agreement is a legal document which is valid in a court of law should there be any dispute.  The landlord must sell the house only to you when the agreement is valid.   Rent to buy homes are ideal if you have credit issues or new to the area.  This process involves a small or no down payment with monthly rental payments. The monthly rental includes a part which accrues towards the purchase price. If you decide not to buy the house, you will lose this along with the option fee.  There are different varieties of rent to buy schemes to suit the needs individual needs.  

With the rent to buy program you can make a part of your rental payments to be used towards purchasing the house unlike the traditional renting system where your rent will not give you any future benefits.  The purchase price of the rent to buy home is locked in and you need not be stressed out about any increase in rent. You can occupy the house immediately after signing the agreement. You can make modifications to the house. If you decide not to buy the house for any reason, the landlord will keep the accrued amount towards the purchase price and the option fee.

Purchasing a rent to buy home is beneficial to both the parties involved. The renter gets to live in the house that he would eventually buy. The rent payments remain the same and there is no fear of rental increase or being asked to vacate at the most unexpected time.  The landlord pays the taxes for the house. You can build equity in the house which will let you plan for a new house or any bigger investment. You also build good credit by making regular monthly rental payments.  The landlords can sell their house quickly as the rent to buy’ agreements are between 6 months and 3 years. By renting and not buying the house you can actually live in it and see if the neighbourhood and the house suit your needs and if not, you can opt out of the agreement and avoid making a huge investment on a wrong house. This scheme is a good option for the landlords who cannot sell the house in the traditional way and potential buyers who are unable to use the traditional ways of financing their homes. In essence the rent to buy house ensures you peace of mind as you know that the house you have rented will become your own soon and the money you pay as rent will not go waste.