Put Your Real Estate Program on Auto Pilot with Rent to Own Programs


Rent_to_Own_programIf you design your rent to buy program successfully, then it is a win – win situation for everyone involved. You as the property owner win because you are profiting financially each month while paying off your property and increasing the amount of equity that you have built up in the home. The tenant wins because they have a nice place to live for an affordable price while having the option to buy the home at the end of the agreement for a fair rate. Basically, everyone wins!

However, if you have been a landlord for a while then you know all of the problems that can often come along with renting. Losing out on a month of rent due to a tenant moving, having to pay to advertise the rental property, taking the time to answer calls and show properties, cleaning and repairing the property in between tenants, calls from tenants late at night, late or missed rent payments, uncleanly tenants, legal problems ant etc..

Remove the Hassle

This is why a rent to own program is a better option. When a tenant is renting with the option to buy they are more likely to maintain the property and keep up with the upkeep of the yard and landscaping. Even if the tenant does not decide to purchase the home, the amount of money that you will save on property repairs and cleanup can be substantial. If they buy the property you still win on your investment return and if they choose not to buy the property it will be a much easier and quicker process to fill the property with new tenants.

By choosing to manage your real estate investments in this way, many of the hassles associated with renting a home can be reduced or eliminated substantially. Let’s take a look at some tips that will help you turn your rental property into an auto pilot program that will provide you with more financial gain and less hassle.

10 Tips for Running a Successful Rent to Own Auto Pilot Programs

  • Charge more! If you want to increase the amount of monthly cash flow that you property produces for you then offering your home as rent to own to tenants is a great way to justify charging up to 20% more monthly rent during the time period of the agreement in exchange with monthly credit.
  • Options upfront! Charge a substantial option down payment fee at the beginning of the rent to own program. This fee is non-refundable and is a convenience fee for the tenant. If the tenant chooses not to buy, then this is pure profit for you.
  • High demand! Rent to own programs are in demand which allows you to choose from more tenants in order to find a good one. This means that because you have the time to choose good tenants who are invested in the property, you will pay less for maintenance and management. Be sure to add in your rent to own agreement that there is a $300 deductible on repairs during the time period of your agreement.
  • Rent paid on time! Because the tenant must pay their rent on time in order to receive the monthly credit, if they do not pay on time then this is a profit at the end of the lease if they choose to buy the home.
  • Big profit! Due to the higher amount of rent which you can charge during a rent to own lease agreement, there is a great potential for profit. In the event that the tenant does not choose to buy the home all money paid is yours and none of the rent is refundable if they choose not to buy the home.
  • Tenant takes care! Because the tenant has interest to his future home, they are far more likely to take care of and invest in the property. Because of this the amount of money that it will cost you for repairs and maintenance will be substantially less
  • Trade one to two! Trade in a single house for two houses which will quickly generate more monthly cash flow.
  • Mortgage with low rate! Variable rate mortgages can be a good idea when investing in rent to own property that you do not plan to own very long. Most of the time a variable rate mortgage will save you money on short term ownership.
  • Tax return! With a rent to own property you will retain all of the tax benefits until the tenant finalizes the purchase of the home. This means that you will also receive a break on taxes such as a financial loss due to depreciation.
  • Appreciation! The buyout price will reflect the value of the home at the beginning of the lease agreement. This means that you calculate the value of the house according market trend.

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.

REAL ESTATE FOR CANADIANS 5 out of 5 based on 5 user ratings.