When you think about rent to own homes, you have to think about them as a contract to rent a home with an option to buy. There is a predetermined price that must be paid once the rental agreement has been fulfilled, and a portion of the paid rent is applied to this price.
Some people choose this type of contract because they do not qualify for a traditional mortgage. Either that, or they wish to improve their credit rating so they can get a better interest rate when they finally do buy a home.
One positive of this type of real estate purchase solution is that should the renter actually choose to buy the home they will get it at the agreed upon amount even if the value of the real estate has gone up between the time the contract was signed and the actual purchase is made. Contracts are binding agreements, and nobody involved can go back on it unless everyone agrees to new arrangements.
Rent to buy homes have become more popular in recent years, in part because of the crisis in the real estate market. However, there are some caveats included when setting up this sort of arrangement. For instance, the renter is expected to pay rent on time and they are not allowed to make alterations to the home without direct permission form the landlord.
There are many other factors involved with rent to own homes that must be considered before a buyer is able to make an informed decision as to whether this is a good way to buy a home or not.