Anyone ever rented to own?

The 3 family house I currently rent is for sale. I'm not too keen on having a new landlord. Ideally we would like to buy a house but right now, it's not in the cards.

Has anyone ever rented to own? How does it work? Does anyone know of any?

Message edited 6/7/2011 6:23:36 PM.

Re: Anyone ever rented to own?

No one?

Re: Anyone ever rented to own?

I am seeing these a lot more often now. Often, sellers who can't sell in the current market (or get the price they want) decide to rent, and they will often rent with an option to buy. Similarly, many prospective buyers aren't in a position to qualify for a mortgage now (with stricter requirements), so they are forced to rent, but rent with option to buy is appealing.

If you let me know your criteria and the geographic area or towns you are interested in (as well as your price range for a rental), I can pull a list of rentals that have the option to buy.

As far as how it works, it varies. It depends on how the landlord wants to structure the deal, and what the parties negotiate. It can simply mean that at the end of the rental period, the tenant has the "right of first refusal" (the landlord will give the tenant the first chance to buy the house before he puts it on the market). Sometimes the rent can be applied to the down payment, sometimes the owner will "hold the note" (eliminating the need for the tenant/buyer to obtain financing).

Let me know if I can help!