Since there are 2 main methods of putting together rent to own transactions, a question we often get from clients is “who chooses the home?”
There is a some confusion on how rent to own works since some companies market their existing inventory of homes as “rent to own”. In this case, which is commonly referred to as “property-first rent to own”, the client can only choose from a limited selection of homes in an investor’s inventory.
The other method of rent to own, and the one we prefer, is called “tenant-first rent to own”. This method allows the client to select their own dream home. The client gets a pre-approval and goes shopping with a Realtor just as if they had been pre-approved for a mortgage from the bank.