Rent to Own How To
By: Alan Aptheker

First, here's a no-nonsense definition. A Lease Option is a contract. Just like any other real estate contract, it’s an agreement between a buyer and a seller. However, during the lease period, to better describe the situation, let’s refer to the buyer as the "short term tenant," and the seller as the "short term landlord." The Tenant and the landlord. Hmmmm. Sounds a lot like renting, because during the lease period, it is in effect, a rental. One big difference. Within 12 or 24 months, that short term tenant turns into a real "buyer" and the short term landlord truly becomes the “seller.”  

So those are the key terms to remember. The Lease Option contract states that the tenant puts 3.5% to 5.5% down (this is