How Do Rent-to-Own Homes Work? The 4 Steps to Homeownership

You may be familiar with the concept of rent-to-own stores, which tend to specialize in furniture and appliances. But how does the rent-to-own process work when it comes to real estate transactions? And specifically, what does a contract like that mean for you as a buyer?

We talked with real estate professionals who specialize in the rent-to-own process in order to get an insider’s look at how to navigate the rent-to-own market from a buyer’s perspective. Their expert knowledge brings clarity and understanding to what could otherwise be a confusing transaction.

What does rent-to-own mean?

Basically, a rent-to-own real estate purchase means that you can live in the house as a renter with the intent to close on the home at a date in the future.

Amani Warden, a real estate agent with years of rent-to-own experience in Tampa, Florida, says it’s important to realize that there are two different types of rent-to-own contracts.