Large purchases often come with large price tags. Whether it’s a home, major appliance, or furniture, the upfront cost can be a barrier for many buyers. Rent-to-own offers an alternative path by allowing you to use an item now while working toward ownership over time.
What Is Rent-to-Own?
Rent-to-own (RTO) allows you to rent an item or property with the option to purchase it later. During the rental period, you make regular payments, and a portion of those payments may be applied toward the final purchase price.
How Does a Rent-to-Own Agreement Work?
Rent-to-own agreements typically include a rental period and a purchase option. Monthly payments are often higher than standard rent, and some contracts require an upfront option fee.
Advantages of Rent-to-Own
- Provides time to save or improve credit
- Allows use before committing to ownership
- May lock in a purchase price
Disadvantages to Consider
- Higher monthly payments
- Non-refundable option fees
- Possible responsibility for repairs
Is Rent-to-Own a Good Fit?
Rent-to-own may work for buyers who are confident they want to purchase but need time to prepare financially. Reviewing the contract carefully is essential.
Final Thoughts
Rent-to-own can be a helpful path to ownership when used correctly and with a clear understanding of the terms.
If you’re considering rent-to-own and want help exploring your options, contact our team to discuss what makes the most sense for your situation.