Is it better to live in rent to own homes, rent, or buy our homes outright? The answer, like many questions of this nature, depends on a lot of things.
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.
One thing tenants should pay attention to is whether or not the landlord covers maintenance costs or not. Occasionally the contract’s terms will state that tenants are responsible for paying for repairs and maintaining the property.
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.
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.