Common questions to me about Rent to Own program


raised_hands_w640If you are thinking about going into the rent to home business, chances are you have a lot of unanswered questions. Let’s take a look at some of the more commonly asked questions by new rent to own investors.

Q – What if the tenant decides not to by the home?

A – Most of the time you will not have to worry about this because they have such a large amount invested in credit at the end of the lease. However, even if they do not choose to buy the home, you are still going to profit because all money paid is considered as rent including any credits that they had earned towards the purchase of the home.

Q – Do I want them to buy the home?

A– Yes, you want them to buy the house. Not only are you doing a good thing by helping others to get on their feet. You will also be earning a profit at the end of the sale due to the equity that you have built up in the home.


Q – How Much Rent Should I Charge for my Rent to Own Home?

A – While there is no set right amount to charge the general rule is to charge about 20% more than you would ask if you were not marketing the home as a rent to own property. This means that if the home would typically rent for $1000 a month then you can ask $1200 per month. This works out to an additional cash flow each month of $200.

Q – Am I still responsible for repairs?

A – Only if you want to be. You can customize the rent to own agreement how you like. Adding a deductible of $200-$500 each month on repairs can save you on minor repairs. You can also make it part of the agreement that the tenant is responsible for minor repairs, and you are responsible for major repairs.

Q – What is the best way for me to explain the rent to own program to tenants?

A – The best way to explain the process to the tenant is to let them know that although “officially” we will be the owner of the home until the end of the agreement, they are essentially the new owner once the lease agreement is signed. As long as they fulfill their end of the deal and qualify for a mortgage for the sales price of the home. The price in the contract is locked in and they will be earning credits towards the down payment during the lease period.

The best thing that you can do to help increase your chance of financial success is to structure your rental periods for a shorter time period so that they do not lose interest. Studies show that people tend to move about every five years so it is best to structure the agreement for a term of one to two years. If you do not want to sell the home and would prefer that the tenant does not buy the home then structure the agreement for three to four years.

Although most of the time the goal is to sell the home to the tenant, there are some instances why you may not want to sell the property at this time. If the home is in an area where the value is increasing due to demand this is a good time to hold on to your property if you can. Also, if you are not ready to get back out there and look for new properties or simply do not have the time to invest right now you may want to structure the agreement for a longer term.

About me


I have a lot of experience in real-estate investment. My main focus to invest in Barrie, Hamilton, Thornhill Woods, Innisfil, Cambridge, Kitchener and etc. I implement different investment strategies: Rent To Own, Student Rental, Multi-unit Rentals, and Flipping.

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