What is a rent-to-own home and how does it work?

In a rent-to-own arrangement, you can buy a home after renting it for a few years. The contract usually requires you to pay more in rent than the standard fair market value, with the additional money usually going toward the down payment or the final purchase price of the property.

What's the difference between a lease option and a lease-purchase agreement?

A lease option allows you to test out living in a home before committing to a purchase, while a lease purchase requires you to buy the property at the end of the lease period.

Do rent-to-own homes help build your credit?

A rent-to-own agreement can help build your credit if the landlord or company reports your timely rent payments to credit bureaus. Not all rent-to-own providers participate in credit reporting, though, so check before entering into an agreement.

Where can I find rent-to-own home options?

A few real estate sites list rent-to-own homes, but you may struggle to find listings in your area. A better option is to connect with a local real estate agent. Local realtors can connect you with sellers willing to rent-to-own their homes or help you compare rent-to-own companies.

Steve Nicastro

Managing Editor

Steve Nicastro is a Managing Editor at Clever Real Estate, the nation's leading real estate education platform for home buyers, sellers, and investors. Prior to joining Clever, Steve helped buyers and sellers navigate a challenging real estate market in Charleston, S.C., closing $6 million in transaction volume for 2020 and 2021.

Over his career, Steve has bought and sold over 30 homes with a total value exceeding $8 million. This includes 20 homes as a realtor, 7 as an investor, and 3 as a primary homeowner and for sale by owner (FSBO) seller. Steve successfully used a local flat fee MLS service to get the FSBO properties marketed online, saving on commission costs.

Steve also worked as a personal finance writer for NerdWallet for over 6 years. His work has been published at USA Today, The Associated Press, U.S. News, and the New York Times, among other online publications.

Expertise: Real estate commission, selling a house without a realtor, buying a home, real estate investing.

Education: Quinnipiac University

Credentials: Full-time, licensed real estate agent in the Charleston, S.C. market from 2019-22. Active real estate investor in North and South Carolina.

External interviews and quotes:

Yahoo Finance: Discussing the NAR settlement
US News: What the $2 Billion NAR Lawsuit Means for Homebuyers and Sellers
Consumer Affairs: Zillow Launches 1% Down Mortgage
The Mortgage Reports: Is an Assumable Home Loan Right for You? Q&A

Find more from Steve:

Featured Published Articles

Learn more about rent-to-own homes, including how they work, if they're a good idea, and how to find listings in your area.
Learn more about the biggest rent-to-own pitfalls to avoid, including paying more for a house than necessary and choosing the wrong home for your needs and budget.
Rent-to-own is an unregulated market that’s prone to scams. Learn the key signs of rent-to-own scams to avoid losing your hard-earned money.
Savvy Lane helps you create an attractive listing and market your FSBO for a flat rate. Here’s what the service provides and how much it costs.
The best flat fee MLS listing service gets your home on the multiple listing service for a flat rate — while also providing important benefits like lead forwarding and 25+ photos.
The typical real estate commission on land sales is 5–10%. Learn what factors affect broker fees on land sales and top ways to save.