If You Can't Buy My House, Rent to Own It

It's a concept that's coming into vogue. But is it right for you?

By Geoff Williams, FrontDoor.com | Published: 8/05/2008

You are in good company. Presumably because of the poor housing market, some new apartment buildings and condominium developments around the country have been offering lease-options to their customers rather than going the traditional sales route.

The most important factor in doing this successfully is due diligence:

• Have a mortgage broker involved at the outset. If the mortgage broker reviews your potential buyer's paperwork and feels that he or she will be a good candidate to buy the house in two years, you can feel reassured that you've done everything you can do to ensure a successful rent to own transaction.
• Have an attorney review the contract.
• Work with a real estate agent who has extensive experience with lease options.

As New York City-based financial planner Patrick Astre concludes, "It needs to be a fair deal, but it will never be a fantabulous deal, and you're not doing it because you're going to get a fabulous deal. You have someone who is going to tie your house up for a couple of years, part of the rent's going to be tied up in a deposit. But it is a good idea -- under the right circumstances."

More From FrontDoor's Guide to Renting a Home:

• 5 Steps to Finding the Perfect Rental Home
• Dos and Don'ts of Decorating a Rental
• 5 Types of Roommates and How to Handle Them
• Renting With Fido: Tips for Finding a Pet-Friendly Rental Home
• 10 Ways to Protect Yourself as a Renter

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