Skip to form

Rent-to-Own Agreement

Answer a few questions to create a professional Rent-to-Own Agreement, ready to edit and sign.

Step 1 of 1413 sections · answer each, then create your document

The owner of the home

The person or business that owns the home, rents it out, and grants the option to buy it. List every owner on the deed.

For a business, use its registered name, including "LLC" or "Inc." if it has one.
Used for written notices.

The tenant-buyer

The person who will rent the home and receives the option to buy it. Use the address where this person gets mail now.

A second tenant-buyer

A second tenant-buyer lives in the home, signs this agreement, is responsible for the rent together with the first, and shares the option to buy.

The second tenant-buyer

The home

Include the unit number if there is one, the city, state, and ZIP code.
Copy it from the owner's deed or the county property record, such as "Lot 14, Block 3, Maple Ridge Subdivision, Parcel 010-123456." Leave blank if you do not have it; the parties can add it before closing.
Items the tenant-buyer may use during the lease and that pass with the home if it is bought, such as "refrigerator, range, washer, dryer, window blinds."
Homes built before 1978 may contain lead-based paint. For those homes the parties complete a separate lead-based paint disclosure; LeaseCraft offers one.

The lease term

The rental part of the agreement. The option to buy can be used only during the lease.

Rent-to-own leases usually run one to three years. The term must be at least 12 months and no more than 60 months.
Name anyone besides the tenant-buyers who will live there, such as children or a parent. Leave blank if no one else will.

Rent and deposit

The full monthly rent. Any rent credit toward the purchase price is set later and is part of this amount, not in addition to it.
A one-time charge for a late rent payment. Leave blank for no late fee. Late fees apply only to the extent the law where the home is located allows them.
Held against unpaid rent and damage during the lease. It is separate from the option fee. Leave blank for no deposit.

Living in the home

The seller-landlord pays any utility you do not select.
Major systems are heating and cooling, plumbing, electrical, and the water heater. Rent-to-own deals often leave these with the owner; some shift them to the tenant-buyer. Where the law requires the owner to make a repair, the owner stays responsible for it either way.
For repairs that are not major systems, the tenant-buyer pays for each repair up to this amount and the seller-landlord pays for anything above it. Leave blank to have the tenant-buyer handle only routine upkeep and damage they cause.
The seller-landlord insures the building either way; renter's insurance covers the tenant-buyer's belongings and liability.
Except in an emergency. 24 hours is common; some places require more.

The option to buy

The tenant-buyer may buy the home but never has to. These answers set the price, the option fee, and any rent credit.

A separate payment for the right to buy. It is not rent and not a security deposit.
This covers the option running out unused and the lease ending early because of the tenant-buyer's default. Whatever you choose, the fee is refunded if the seller-landlord defaults. In some states the owner may not keep the option fee.
A rent credit is earned only for rent paid in full and on time, is applied only at closing, and has no cash value unless this agreement says it is refunded.
The tenant-buyer must give written notice of the decision to buy on or before this date. It must fall within the lease term, usually on or shortly before the lease end date.

Buying the home

Allow time for the tenant-buyer's mortgage, title work, and any appraisal. 45 to 90 days is common.
A short notice filed in the county land records that tells the public the tenant-buyer holds an option on the home. It protects the tenant-buyer if the owner tries to sell or borrow against the home.
A seller's statement of known defects, such as leaks, foundation problems, or past repairs. Several states require one for a lease with an option to purchase.

Late payment and default

If rent stays unpaid this many days after the seller-landlord's written notice, the seller-landlord may end the lease. Some states set a minimum for these agreements; if the selected state does, LeaseCraft checks your answer against it.

Anything else

Write them as plain sentences. They are added under "Additional Terms."

Governing law

The agreement is governed by the law of the state where the home is located. LeaseCraft does not prepare this agreement for every state; if a state is not available, you will see why.

Preview free · LeaseCraft Annual $19.99/year — unlimited documents · Cancel any time · Templates are not legal advice.

Why LeaseCraft?

Professional formattingAttorney-style structure landlords recognize
Built from your answersNot a blank template — personalized to your situation
Checked before you buyWe flag missing or inconsistent answers
Edit before you payFix typos on preview — no wizard restart
Cancel any timeLeaseCraft Annual $19.99/year