Leasing with the Option to Buy

Real Estate

I am sure you have in the past heard the term Rent To Own, So what is it and how does it work?

 

Rent to own or leasing with the option to buy is basically whenever the seller or his property to a tenant or higher monthly lease payment with the promise to give the tenant the right to buy within a set period  o time at a set price decided whenever both entered the agreement.

So you might ask how does that benefit both the buyers and sellers? 

A unique feature of the lease-option is the rent credit. The tenant usually pays above-market rent for the property, but a (nonrefundable) portion is credited toward the purchase price if the buyer decides to exercise the purchase option.