The 8 Best Methods for Finding a Rent-to-Own Home

After weighing the pros and cons, if you decide that rent-to-own is for you, here’s how to find rent-to-own homes, help avoid scams, and get another step closer to homeownership.

How to find rent-to-own homes

1. Talk to an experienced agent

One of the most valuable resources at your disposal during the house-hunting process is an experienced buyer’s agent by your side. You’ll want to find an agent who has experience conducting rent-to-own transactions because there can be a lot of unfamiliar terms and conditions with these agreements. Although a seller probably isn’t out to take advantage of you, they want the best outcome for themselves, so they aren’t necessarily working in your best interest. A buyer’s agent is extra armor against a bad deal.

James Silver, a top Detroit-area real estate agent with 24 years of experience, knows how important a good agent is when searching for rent-to-own homes. He’s worked with 76% more single-family-home sales than other agents in his area, and he has extensive experience with rent-to-own properties.

“Sellers aren’t going to help you make all these decisions” that go into a rent-to-own contract, he explains. “That’s why you need a really good real estate agent to advocate on your behalf.”

Not only can an agent offer their insight and years of experience, but they can help you find just the right opportunity, whether that’s through specific MLS searches, their extensive real estate network, or their knowledge of the latest trends in your market or geographic area.

It’s important to get preapproved for your financing before you begin looking or approach your landlord, so you don’t waste time renting-to-own something you can’t truly afford.

2. Find a brokerage with a rent-to-own program

You might also consider going with an agent or brokerage with dedicated rent-to-own programs to find homes to lease with the right to purchase.

Not a brokerage, these types of companies are closer to real estate investment firms. They work with you and licensed agents to find a single-family home you may not typically be able to rent. Then, they buy it, set a purchase price for the home, and lease it to you; you have the right to buy the home after your lease is up at the preset price. These programs allow you to move in and get a feel for the home and the neighborhood before fully committing to a purchase.

Top Tampa real estate agent Christina Griffin uses rent-to-own programs to help her buyers get into homes in their desired neighborhoods. Griffin’s 24 years of experience, particularly with single-family homes, have given her extensive insight into the problems that can crop up with rent-to-own homes.

“If at any time the person that owns the home goes into foreclosure or they decide to sell the home, it’s very hard to be able to have the ability to get that money back that you’ve invested,” she says. “More people than I can count, the home went into foreclosure.” The renters had no clue there was even any trouble, and then the home was taken from under them.

Using a rent-to-own program helps reduce some of that risk. Instead of rent-to-own, the arrangement is what’s known as “rent with the right to purchase.” You pay rent, but you pay nothing additional toward the purchase price. Your rent and the purchase price are both locked in, and you get the right to buy the house whenever you’re ready, according to the terms of the agreement.

Griffin recommends to her buyers that they make sure it’s a rental price they can afford and that they can make sure they’re in an area where they can buy. “There’s just a lot of uncertainty around rent-to-own unless it’s an investment property,” she says. That’s why a specialist company can benefit the buyer — by removing some of the risks that the seller might not make good on their end of the deal.

3. Contact a seller

An experienced agent can help you think outside the box and identify listings that have been lingering on the market for months. The sellers of those homes might be especially interested in renting, giving them the opportunity to earn a little extra money per month while both parties move toward an eventual sale.

For a seller who’s been having a hard time selling a property, a rent-to-own arrangement helps them with a monthly income in the form of rent from you. And if you’re not in a position to secure a traditional mortgage, you can be living in a home while you rebuild your credit, look for a job, or wait for legal matters to be settled — whatever your situation may be.

Arranged properly, rent-to-own agreements can benefit both parties. Your agent can help you locate these sellers and negotiate a deal.

Even if a seller isn’t currently offering a rent-to-own option, your agent can float them the possibility.

Silver says, “I call the agent and just say, ‘Hey, I have a client that’s looking for something like this with a lease option (to buy); they have really good credit scores, they’ll be able to buy in the future, and your seller can collect extra money in the meantime and get what they’re looking for.’” The listing agent can then take that offer to the seller and sometimes work out a deal.

He also offers to call people who have a home for lease. “They’re often open to lease with options — or if it’s just a straight rental, just call and ask people.”

You won’t know unless you ask, and your agent can help you ask.

4. Find a reluctant landlord

Similarly, you and your agent may be able to find a landlord who’s looking for an escape hatch. If they’re interested in selling the property they’re currently renting out, your rent-to-own offer could be a great way to make that transition.

These types of landlords usually have just one rental property, and they may have begun renting it out because they had difficulty selling it. You may be able to sweeten the deal by offering to maintain the home and perform repairs while you’re renting — tasks that reluctant landlords may particularly dislike. In return, if all goes well, you’ve got a home to purchase at the end of the contract: one which you’ve been caring for and living in, so you know what you’re getting.

According to Kim Alden, a premier luxury real estate agent in the Northwest Illinois suburbs, “Rentals are few and far between, and sellers really aren’t in a position where they aren’t able to sell. So it’s really never even been a discussion like, ‘Hey, can I make this a rental because it’s not selling,’ because basically everything is selling as long as it’s priced in the ballpark.”

5. Explore the foreclosure market

One source of possible rent-to-own homes is the foreclosure market. Homeowners facing foreclosure might be especially open to a rent-to-own contract; the catch is that you cannot make a rent-to-own arrangement if the house is already in foreclosure. But if the owner is in pre-foreclosure, they can benefit from the rent they collect from you while also securing a path to the eventual sale of the house.

One such specialty portal that can help you find quality leads for rent-to-own homes is foreclosure.com. They have thousands of listings where the seller may be willing to enter a rent-to-own agreement with the buyer to help them avoid foreclosure, and you can browse by state and even by county.

You’ll still need to offer terms the seller will agree to, and it’s worth the money to hire a real estate lawyer to review your contract to make sure all of your bases are covered. And keep in mind, if the home is foreclosed on, you may lose the house and any money you’ve invested so far.

6. Use a specialty portal

There are a number of specialty portals geared toward helping people find rent-to-own homes, including Rent-to-Own Labs, Hidden Listings, and HomeFinder. Each of these costs $1 for a 7-day trial and $49.60 for every month after that. (These prices and terms are, of course, subject to change!)

But these sites also list homes that are for sale, in preforeclosure, or up for sheriff’s sales or foreclosure auctions, so it’s unclear whether all of the homes are actually rent-to-own options or whether the owner is willing to enter a rent-to-own agreement.

For instance, a home might come up in your area listed as “Verified” on Rent-to-Own Labs but is also up for “Sheriff’s Sale,” meaning there is a judgment against the home and it will be put up for auction.

If you decide to use any of these platforms, make sure you do your research on the individual property before getting too excited.

7. Look into startups

There are a number of startups out there looking to reinvent the rent-to-own market and clean up the rent-to-own model’s reputation.

Divvy, ZeroDown, and Landis (which boasts investors including Jay-Z and Will Smith) essentially allow you to choose a home that you eventually want to buy, purchase it, and lease it to you for a specified period, after which you can buy the home for the predetermined price.

During the lease period, you’ll be building your credit score while you pay rent, and part of your rent payment is set aside for an eventual down payment. Typically, you can keep the down payment if you decide not to buy the house.

8. Reach out to your network

Whether you reach out to your network personally or via social media, you just may find that someone in your circle is trying to unload a home quickly and would love to connect with you. Reach out to your friends, neighbors, and other social contacts. Let them know you’re looking to move; ask around if anyone is open to a rent-to-own arrangement.

You can also widen your net by posting on a neighborhood notice board or a site such as Nextdoor or Facebook. You can even join specialty groups on Facebook that are dedicated to finding and sharing rent-to-own homes. Just be careful when advertising or connecting outside of your circle, because rent-to-own scams abound. It would be crushing to pay years of rent credits and an option fee only to find the “seller” doesn’t legally own the home or never intended to sell it at all.

Legal and financial risks of rent-to-own homes

Rent-to-own agreements can be an appealing path to homeownership, but they come with significant legal and financial risks that buyers need to understand before signing a contract. Without careful planning and legal guidance, tenants could lose money or face unexpected obligations.

Non-refundable option fees

Most rent-to-own contracts require an option fee (typically 1%–5% of the home’s price) upfront. This fee grants the right — but not the obligation — to purchase the home at the end of the lease. However, if the tenant chooses not to buy or fails to qualify for financing, this money is not refunded.

Example risk: If you pay a $5,000 option fee on a $200,000 home but decide not to purchase after three years, you lose that money with no financial benefit.

Higher monthly costs with no guarantee

Rent-to-own agreements often require above-market rent, with a portion credited toward the home’s purchase. But if the tenant doesn’t buy the home — whether due to financing issues, unexpected relocation, or a change in circumstances — those extra payments do not get refunded.

Example risk: If you pay an extra $300 per month in rent credits for three years, that’s $10,800 lost if you don’t proceed with the purchase.

Risk of eviction and forfeiture

Unlike traditional leases, rent-to-own agreements often include strict payment terms. Missing a payment or violating any contract clause could result in eviction — meaning you lose both the home and any money already invested in rent credits or the option fee.

Example risk: If your contract requires on-time payments every month but you miss a single rent payment, the seller may cancel the agreement, keeping all prior payments.

Responsibility for repairs and maintenance

In many rent-to-own contracts, the tenant is responsible for repairs and maintenance, even though they do not yet own the home. If the property has hidden structural issues, the financial burden falls on the tenant, not the landlord.

Example risk: A faulty roof or outdated plumbing could cost thousands in repairs, and if the deal falls through, that investment benefits the landlord, not you.

Unclear or predatory contract terms

Some rent-to-own agreements include vague or deceptive clauses that favor the seller. Common contract issues include:

• Balloon payments – requiring a large lump sum at the end of the lease.
• No clear path to ownership – failing to specify how rent credits apply to the purchase price.
• Unfair cancellation policies – allowing the seller to void the agreement with little notice.

Example risk: Some sellers include clauses stating that any late payment automatically voids the contract, allowing them to evict you while keeping all payments made.

Market and home value fluctuations

Many rent-to-own contracts lock in a purchase price at the start of the lease. If the housing market declines, you may be stuck buying a home that is worth less than the agreed-upon price.

Example risk: If your contract locks in a $250,000 purchase price but the market value drops to $220,000, you could be overpaying by $30,000.

Seller’s financial stability risks

If the landlord fails to pay the mortgage, property taxes, or other obligations, the home could be foreclosed on — even if you’ve made all your payments on time. In this case, you lose all payments made without a clear path to reimbursement.

Example risk: If the landlord goes into foreclosure, you could be forced to move out without getting back any of the money you put into the property.

How to protect yourself

• Hire a real estate attorney – Always have a professional review the contract before signing.
• Verify the seller’s ownership and financial health – Ensure the seller is up to date on mortgage and tax payments.
• Clarify contract terms – Make sure all key details (purchase price, rent credits, maintenance obligations) are clearly outlined.
• Negotiate a flexible agreement – Ask for terms that allow you to apply rent credits even if you don’t purchase the home.
• Understand your financing options – Work with a mortgage lender to improve your credit and prepare for loan qualification before the lease ends.

Is a rent-to-own home for you?

Before deciding on a rent-to-own agreement, make sure you think long and hard about the pros and cons. It’s difficult to know where your life will take you, so locking into a home purchase for some time in the future needs to be something you’re absolutely sure you want to do.

Alden says she rarely sees rent-to-own agreements that work out. She notes that tenants start to cool on rent-to-own contracts once they realize everything that goes into it. “They have to pay an attorney because it’s literally like a purchase contract that’s just going to have an extended closing period,” Alden says, “so when they find out they have to pay an attorney to write up the contract and they have to have a preapproval, they tend to shy away and go and just look for a traditional rental.”

Alternatives to rent-to-own homes

While rent-to-own can be a viable path to homeownership, it’s not the only option. If you’re considering alternatives, here are a few ways to buy a home without committing to a rent-to-own contract:

FHA loans (low down payment option)

The Federal Housing Administration (FHA) offers loans with down payments as low as 3.5%, making homeownership more accessible for buyers with lower credit scores or limited savings.

USDA loans (for rural and suburban buyers)

If you’re open to living in a rural or suburban area, a USDA loan allows eligible buyers to purchase a home with zero down payment and competitive interest rates.

VA loans (for veterans and active military)

Eligible service members, veterans, and surviving spouses can access VA loans, which require no down payment and have favorable loan terms.

Down payment assistance programs

Many states and local governments offer grants or down payment assistance programs that help first-time buyers cover initial costs. Some programs even provide forgivable loans if you meet residency requirements.

Seller financing

In some cases, homeowners may be willing to finance the sale directly, allowing buyers to bypass traditional mortgage lenders. This can be a flexible alternative for those who struggle to qualify for a loan.

Shared equity or co-buying

If affordability is a concern, you can explore co-buying with a family member or friend or participate in a shared equity program, where an investor helps cover the down payment in exchange for a share of the home’s future appreciation.

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If you do decide to pursue a rent-to-own home, no matter which way you go about finding one, it’s incredibly important to protect yourself against financial disaster. Get everything in writing, get a trusted expert to look it over, and don’t rush into anything — especially if it sounds too good to be true.

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