Finding a rent-to-own home is possible — but it’s rarely easy, and it’s not always the smartest path to homeownership.
Rent-to-own homes make up less than 2% of housing arrangements, and many listings that claim to offer rent-to-own options either come with unfavorable terms or never lead to a purchase.[1] While interest is growing — especially among younger buyers — many people end up paying above-market rent for years without ever qualifying for a mortgage.
Buyers seeking to rent-to-own might also fall victim to scams, or simply end up paying more than fair-market value in rent over a period of a year or two, then find themselves unable to qualify for a mortgage. For many buyers, it makes more sense to spend some time improving their credit score and saving up a minimum down payment on a home (3% to 3.5% for conventional or FHA loans).
If you’re set on rent-to-own, the key is knowing where to look, who to trust, and what to avoid. Below, we’ll walk through the most reliable ways to find legitimate rent-to-own homes near you, how to spot scams, and when it may actually make more sense to focus on credit repair and low-down-payment loan options instead.
Rent-to-own can help some buyers bridge the gap to ownership — but it’s not always the fastest or most affordable path. In many cases, spending six months improving your credit score and saving a small 3–3.5% down payment could qualify you for a traditional loan sooner than you think.
Before signing a lease-option contract, it’s worth comparing how far a little credit repair and savings might go toward buying outright.
Curious to learn how long it might take to qualify for a mortgage without rent-to-own? Clever can introduce you to agents in your neighborhood who help buyers like you every day. Take a short quiz to connect with an agent and start your homebuyer journey faster!
What is a rent-to-own home?
A rent-to-own home is a property you rent for a set period with the option — or obligation — to buy it later.
There are two main structures:
- Lease-option agreement: You have the option to buy the home at the end of the lease, but you’re not required to. If you walk away, you usually lose any upfront option fee or rent credits.
- Lease-purchase agreement: You’re contractually required to buy the home when the lease ends. If you can’t qualify for a mortgage, you could face legal and financial penalties.
In both cases, rent-to-own buyers often pay:
- Above-market rent, sometimes with a portion credited toward the purchase
- A non-refundable option fee (typically 1–5% of the price)
Is rent-to-own right for you?
Rent-to-own may make sense if:
- You’re close to qualifying for a mortgage but need time to fix credit
- You can document stable income and savings growth
- You’re working with an agent or attorney who can review the contract
Rent-to-own is often risky if:
- You’re relying on future income increases that aren’t guaranteed
- You can’t save while paying higher rent
- The contract locks you into a purchase price far above today’s market value
For many buyers, six months to a year of focused credit repair and savings can unlock traditional financing faster — and with far fewer risks.
How to find legitimate rent-to-own homes near me
Because rent-to-own homes are rare and often not clearly labeled, you’ll need a strategic approach.
Here are your top options.
1. Hire a real estate agent experienced with rent-to-own
Working with a real estate agent who understands rent-to-own is often the safest and most effective approach.
Agents don’t just search listings — they can:
- Identify homes that might be good rent-to-own candidates
- Ask sellers if they’d consider a lease-option
- Negotiate fair purchase prices and timelines
- Flag contracts that heavily favor the seller
Many rent-to-own homes never appear online as such. They’re created through direct negotiation, which is where an experienced agent adds the most value.
How to find a rent-to-own realtor
You can search local real estate directories or use a free agent-matching service like Clever to connect with agents who have experience handling lease-option or lease-purchase agreements.
📞 Consult a pro!
Rent-to-own contracts are complex. so you might want to avoid the DIY approach — especially if you're not ready to negotiate with homeowners.
A qualified real estate agent — or even a real estate attorney — can help you understand the fine print and negotiate better terms to protect your interests.
2. Work with a rent-to-own company
Rent-to-own companies purchase homes and lease them to buyers who plan to buy later. Popular examples include:
- Divvy Homes: 3-year term; buy anytime
- Home Partners of America :1–5 year terms; preset purchase price
These programs can simplify the process — but they come with tradeoffs. Independent research suggests that only about 38–50% of participants successfully buy their home through these programs.[2]
Before signing, compare:
- Total rent vs. market rent
- How much (if any) rent credit you earn
- What happens if you don’t buy
What to compare when evaluating rent-to-own companies:
- Contract terms: Look for details on lease length, rent credits, purchase timelines, and who handles maintenance.
- Available markets: These companies often operate in select cities or states. Check their service areas before applying.
- Minimum qualifications: Most require a minimum credit score, income verification, and a background check.
- Eligible homes: You may be limited to specific property types, like single-family homes or new builds.
- Customer reviews: Check Trustpilot, BBB, and online forums to assess trustworthiness.
3. Search online platforms and contact homeowners directly
If you prefer a DIY approach, you can use websites that specialize in or include rent-to-own listings.
Online platforms for rent-to-own homes
- Zillow and Redfin: Use filters to search for rent-to-own listings.
- Rent to Own Labs and HomeFinder: Focus specifically on rent-to-own homes.
- ZeroDown and Hidden Listings: May include rent-to-own options.
If you want to do some research before talking to a realtor, you can also search real estate listing websites for rent-to-own properties. Websites like, and often advertise rent-to-own home listings.
Websites like Zillow and Redfin allow you to filter your search for rent-to-own homes, while Rent-to-Own Labs and Homefinder specialize in these listings. Simply enter your criteria and contact the homeowner or company directly for more details.
Reaching out directly
If you find a property for rent in your ideal neighborhood, contact the owner and ask if they’d consider a rent-to-own deal. Some landlords may be open to it, especially if they’re struggling to sell or want a long-term tenant.
Additional ways to find rent-to-own homes near you
Try these creative strategies to find hidden opportunities:
- Join local Facebook groups like “Buy/Sell/Trade” or “Housing in [City].”
- Spread the word to friends, family, and coworkers.
- Drive neighborhoods you like and look for “For Rent” signs.
- Check local newspapers, bulletin boards, or community centers.
Financial and legal considerations
Rent-to-own deals involve more than just monthly rent; there can also be unique financial risks. Make sure you:
- Understand upfront fees: You may need to pay a non-refundable option fee (typically 1–5% of the purchase price).
- Know what your rent covers: Is part of it going toward the purchase price? If so, how much?
- Clarify maintenance responsibilities: Some agreements shift home upkeep to the renter.
- Get legal help: Hire a real estate attorney to review the contract — especially if it’s a lease-purchase agreement.
Pro tip: A legal review can help you avoid hidden clauses or unfair terms that benefit the seller more than the buyer.
Are rent-to-own websites legitimate?
Generally, yes. Websites like Rent-to-Own Labs and Homefinder allow you to easily search for RTO homes and contact sellers. These are not to be confused with rent-to-own companies like Divvy Homes, which works WITH you to rent and buy a home, as opposed to connecting you with a seller.
Tips for finding legit rent-to-own properties
💻 Research the seller or rent-to-own company
Before committing to a rent-to-own home, aim to learn as much as you can about the owner or company. Here are a few steps you can take to make a more informed decision:
- Verify that the seller is the actual owner of the property. View the home's ownership information from its tax records on a local county or city website.
- Google online reviews. Check out the rent-to-own company or property manager reviews to get a better idea of their customer service. Websites like TrustPilot and the Better Business Bureau (BBB) can be helpful resources for finding and comparing customer reviews.
- Search for customer complaints. Similarly, it's smart to see how many BBB complaints a company has and if the complaints have been resolved.
In addition, find out why the seller is offering the home as a rent-to-own instead of selling it. For example, the homeowner might want to rent the home before selling it, or they may be having difficulty selling and think this will help. Knowing their reasons can help you during negotiations.
🔎 Watch out for overpriced (or underpriced) properties
Be aware of the potential for rent-to-own scams and be on the lookout for warning signs. Here are a few questions to ask yourself to help evaluate a listing's legitimacy:
- Is the home’s listed price realistic, and is there a reason it’s significantly lower or higher than comparable properties in your area?
- Does the cost breakdown for renting and eventually purchasing the home include high upfront fees? Are these fees justified and explained clearly?
- What’s the home’s condition? Will it require a lot of maintenance and repairs after you move in, and will you be responsible for covering those costs?
- How thorough is the contract? Does it include all expected terms and conditions, or is it vague, skipping over key elements like whether it's a lease-purchase or lease-option agreement?
The homeowner or rent-to-own company should be able to answer these questions clearly and promptly.
| 🚫 If you suspect that the rent-to-own arrangement is a scam, file a report with the police or the Federal Trade Commission. |
The bottom line
Rent-to-own homes can work for a narrow group of buyers, but they’re expensive, complex, and easy to get wrong.
Before committing, compare rent-to-own against:
- FHA or conventional loans with 3–3.5% down
- Short-term credit improvement strategies
- Working with an agent to negotiate flexible terms
In many cases, buyers discover they’re closer to owning outright than they thought — without the risks of a rent-to-own contract.
Before committing, talk with a local real estate agent or mortgage advisor about how close you might already be to qualifying for a low-down-payment loan. You may be surprised at how soon you can buy a home outright, and on your own terms.
Why trust us
The Clever Real Estate team spent dozens of hours researching the ins and outs of rent-to-own programs to create this comprehensive guide. We thoroughly examined agreements and consulted with industry experts to bring you the most accurate and reliable information.
It's our opinion that the best way to find a rent-to-own home is to work with an experienced real estate agent. They have the knowledge and resources to help you find the right home quickly and efficiently. The benefits of working with a realtor far outweigh any potential downsides (which are minimal).
Rent-to-own homes can be a good housing option for people who want to buy a home, but are unable to qualify for a mortgage. However, it's important to be aware that not all rent-to-own programs are legitimate or cost-effective. Consult with a local realtor or a real estate attorney for more specific, localized guidance.
Rent-to-own agreements can be expensive, and not everyone ends up purchasing the home. If your main goal is to become a homeowner, you might get there faster by taking six months to focus on credit improvement and down payment savings.
Even modest progress — like raising your credit score by 40–60 points or saving 3–3.5% of a purchase price — can make you eligible for an FHA loan or another low–down payment program. Working with a trusted agent or lender can help you compare these options and see which route will get you into a home more securely and affordably.
Our experts
- Marjorie Scholtz, the CEO of Verbhouse, a rent-to-own company that aims to provide affordable home financing options for low and middle-income workers in high-cost housing markets. Marjorie is also a licensed real estate professional and previously worked as a co-founder and CEO of Stangl Advisors, helping people navigate loan modifications, short sales, and foreclosure alternatives.
Michelle Boyd, a housing policy expert who works with Terner Center, a nonprofit organization dedicated to making housing more affordable and fair for consumers. Boyd also works with Terner Labs, a nonprofit affiliate that leverages technology to improve housing affordability and sustainability.
About the authors
Steve Nicastro is a real estate professional with extensive experience in South Carolina, where he has personally helped people find and evaluate rent-to-own homes.
He believes that working with a seasoned buyer's agent can be extremely beneficial when searching for rent-to-own properties. An experienced agent will use their access to the MLS, industry connections, and local knowledge of rent-to-own companies to help clients find the best housing options in their area. They can also assist with understanding and negotiating rent-to-own agreements and ensure that client's interests are protected during the process.
Brendan Rigney is a researcher and content writer at Clever Real Estate, where he writes about home buying, selling, and investing. He has a background in urban affairs and housing and also works with local governments, nonprofits, and community organizations to study and address policy issues.
Prior to joining Clever, Brendan worked as a freelance reporter, writer, and researcher for various media outlets, nonprofits, and businesses. He received his B.A. from La Salle University and his Master of Public Administration degree from DePaul University, with a focus on metropolitan affairs and policy.
