How to Get a Rent to Own Home

A rent to own home is easy to come by in most real estate markets. When the market falls, there are more foreclosures and owners want to get rid of their homes instead of foreclose. In a good market, more people look towards buying than renting. Investors with rent to own homes tend to do better. If you want to rent a house with the option to buy in the future, there are some steps you can take to help the process along. This article will show you what you need to do to get a rent to own home.

Difficulty: Moderate

Instructions

1. Check the classified ads under the rental section. There will probably be some listings for rent to own homes, but don't ignore the plain rental ads either. There are plenty of real estate investors who want to get rid of their properties, but have never heard of "rent to own". You could be the first to introduce the subject.

2. Call the owner and ask if they would be willing to rent the house to you with the option to purchase. Tell them you would like to take a look at the house, but only if there is an option to own after a certain amount of time. If the owner entertains the idea, set up an appointment to see the home.

3. Call a realtor and ask her to take a look at the home with you. In fact, ask her to pull some comparable properties in the neighborhood to make sure you know what the home is actually worth. Home value and asking price can be two completely different numbers. You want to come to the house informed.

4. Draw up a contract. Ask your realtor if he has any sample rent to own contracts. If he does not, the Internet has plenty of free contract sites. Simply find one that fits your needs. The rent to own contract should give you the option to purchase. It should not be set in stone.

5. Treat the home with respect when you live in it. When you decide to rent the home, make sure you keep it in beautiful condition. The better the home, the more money you will save and potentially make when you decide to own it in the future.

Tips & Warnings

• Work out a contract that applies a certain percentage of your rent each month to the principal of the home.
• Don't purchase a rent to own home in a down real estate market. You could end up paying a lot more than it is really worth.