If you're hoping to buy a house but aren't quite ready to make a commitment, you may want to consider looking for rent-to-own homes. These deals let you rent a home now while working toward buying it later, giving you time to build credit, save for a down payment, or stabilize your income.
But there's a catch: rent-to-own homes are hard to find. They make up less than 2% of living situations, despite growing interest, with 55% of Gen Zers and 37% of millennials expressing interest in rent-to-own agreements.[1]
Here’s how to find a rent-to-own home near you, avoid scams, and increase your chances of landing a home you love.
What is a rent-to-own home?
A rent-to-own home is a property you rent for a fixed term with the option — or obligation — to purchase it at the end of the lease. These arrangements can give you time to build credit, boost income, or save up before buying.
There are two main types:
- Lease-option agreements: You can buy the home at the end of the lease, but you're not required to.
- Lease-purchase agreements: You're required to buy the home when the lease ends.
For example, if you enter a three-year lease-option agreement, you might pay a slightly higher monthly rent — with a portion going toward your future down payment. When the lease ends, you can choose to buy the home at a pre-agreed price or walk away.
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
Realtors have access to the multiple listing service (MLS) and can connect you with landlords or rent-to-own companies. An experienced agent may know of listings that aren’t widely advertised or homes that are good candidates for rent-to-own negotiation.
A good agent will also:
- Advocate for fair terms
- Walk you through rent-to-own contracts
- Help you spot red flags
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
Many rent-to-own companies buy move-in-ready homes and lease them to buyers with the option to purchase later. These programs are designed for renters who can’t get a mortgage today but want to work toward ownership.
Top rent-to-own companies include:
- Divvy Homes – Offers a 3-year term and allows you to buy the home anytime.
- Home Partners of America – Offers 1–5 year terms with a set purchase price.
- Dream America – Focuses on buyers who need time to improve credit or savings.
A recent report found that only 38–50% of customers with Divvy or Home Partners successfully purchased their home.[2] Carefully review contract terms before signing.
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.
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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. |
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.
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.
