What’s a rent-to-own home and how does the process work? | Forbes

Rent-to-own property is a home that you can rent for a certain period of time before you purchase it, and some of your previous rent may go towards the down payment. Unfortunately, this is usually utilized in low markets and in undesirable areas where a tenant will need extra motivation to rent. When looking at a contract, it is not uncommon to see an “option fee” along with your security deposit. This is usually nonrefundable and is required because you have the option to buy the house. Some contracts also require you to buy the house after the waiting period, rather than giving you a choice, meaning professional help is recommended when considering a rent-to-own.

Source: https://www.forbes.com/sites/taramastroeni/2020/01/13/what-is-a-rent-to-own-home