Contract There are two separate contracts to sign: – Rental agreement – A lease option to purchase
The rental agreement is similar to a standard lease with the rent specified, but the difference is the agreed-upon term to purchase the home potentially. Typically this ranges from one to three years after the agreement begins.
Something else to consider in the agreement is whether or not the home is a lease-purchase or lease-option. When you first read about the two, they sound similar, but there’s a BIG difference to pay attention to.
Everything in life is negotiable. That also applies to the rent to own homes option. Make sure you address this with the owner before signing any agreement. It’s not uncommon for tenants to pay 15-20% more in rent as well. But remember that this “extra” amount will be credited toward the home’s future down payment.