Is Rent-to-Own Right for You? What to Know Before You Say Yes

If you’ve been renting while watching home prices climb, you’re not alone. In fast-moving markets, home values can rise faster than you can save—making it feel like you’re always just out of reach.

That’s where rent-to-own can offer a real advantage. It gives you the chance to lock in a purchase price today, while you live in the home and build toward ownership—often with a portion of your rent being credited toward your future down payment.

It sounds like a dream. And for many, it is. But like any path to homeownership, there are important things to watch out for.

Rent-to-Own Is Legit—but Not All Offers Are

Rent-to-own is a legally recognized homebuying path. It can be a game-changer if you’re rebuilding credit, managing debt, or short on closing costs. But not every rent-to-own opportunity is created equal.

Some companies or individuals take advantage of buyers who are eager to own and unaware of how the contracts work. These scams can cost you money—and the dream of homeownership.

Let’s break down what’s real, what’s risky, and how to protect yourself.

Common Red Flags in Rent-to-Own Opportunities

Here’s where things can go wrong if you’re not careful:

  • Fake owners: If you are trying to do a rent-to-own through a listing website other than realtor.ca, you need to be extra cautious.  It is one thing to post an ad about the opportunity to do a rent-to-own, it is another to post a specific home that someone is willing to rent-to-own to someone.  Believe it or not, some scammers pretend to own a property they don’t. They’ll list a vacant home online, meet you in person, collect a deposit—and vanish.  If this is a path you really want to go down, make sure to interview the owner, ask for proof of ownership and have a lawyer involved in the purchase from the start.

  • Hidden problems: The home might have mold, water damage, or even be in foreclosure, none of which you were told upfront.  Always do a home inspection so you know if you are going to be inheriting some major issues.  No home is perfect so expect a few imperfections but be very comfortable with the actual issues and what you can handle – emotionally and financially.

  • One-sided contracts: Some agreements include harsh penalties if you’re late on payments (including losing all of your down payment—even by a few days—or threaten to evict if the payment is late.

How to Protect Yourself

You can safely navigate rent-to-own—but it takes the right information and support. Here’s what to do before signing any agreement:

  • ✅ Verify who owns the home (if using a listing service)
    Ask for proof of ownership, like a tax bill or title report. Don’t just take someone’s word for it.  With out program, we use licensed realtors to negotiate the purchase of a house from the seller.  Since we are buying the house outright, we dont have to worry about fake owners.

  • ✅ Understand the contract fully
    Know your monthly payments, what portion goes toward your down payment, and what happens if plans change. A real estate lawyer can help you spot red flags and protect your interests.

  • ✅ Get a home inspection
    A professional inspection can uncover issues you might not see right away—giving you peace of mind and negotiating power.

  • ✅ Compare prices
    Look at similar homes in the area. Make sure the price you’re locking in is fair. You deserve a good deal—just like any other buyer.

Not Sure if Rent-to-Own Is Right for You?

Many people think they can’t buy because they’ve been turned down by a bank, don’t have closing costs or don’t have 20% down. But that doesn’t mean ownership is out of reach.

Talk to someone who understands both the rent-to-own path and the traditional mortgage process. You may be closer to homeownership than you think—especially if you have stable income and some savings already.

Rent-to-own can be an empowering step forward—but only if the program is transparent, the numbers work in your favour, and the people guiding you truly have your back.

When done right, it’s not just about renting with hope—it’s about moving with purpose, toward a home that will one day be fully yours.

Want to explore if rent-to-own could be the right move for you?