KGC Properties LLC ~ Property Management & Real Estate In Tucson!


The Rent To Own Flower: You Love Them - You Love Them Not!

Rent to own is really a (here's my big word for the year!) misnomer: applying a wrong name to a person or thing.  Rent to own implies that you rent for a period of time and then you own the home.   But that's not what happens -  renting to own a home is a lease that gives you the option to buy the home within a certain amount of time.  Because people do not understand how a lease option works - they enter into these agreements with a lot of misinformation, find out it wasn't love at first signing and sadly lose money.

Three  big things about lease options:

  1. The down payment money and the amount of money agreed to be applied toward the purchase DOES NOT get refunded to the lessee (renter-tenant)  if the home is not purchased.
  2. Once you enter into a lease option - you no longer have a landlord - you are responsible for the home - all repairs including major ones - you essentially become a home owner.
  3. To have a valid, enforceable lease option- you need to be qualifed with a lender to buy the home, give down payment money (which you will lose if you do not buy the home) with all monies deposited in an escrow account until the lease ends. If you are doing a lease option any other way - or with a do-it-yourself landlord - well, good luck.

When should you love lease options? 

  • If you are tired of renting and want to buy a home, but your credit, income situation or other factors prevent you from getting a loan.
  • If you found the home of your dreams, but you need time to fix your credit before you can buy it.

When should you not love lease options?

  1. If you don't have the discipline or desire to change your financial habits to save money or fix your credit.
  2. If it's not the home of your dreams, you are not sure that this is the right home for you or if it's just a stepping stone home.
  3. If you think you might move to another town or state at some point. 
  4. If you don't have a steady income. Your mortgage will not be approved at the end of the lease option without a stable income source

You love them, you love them not ... you love them, you love them not .... whichever petal you end up with - make sure it's right for you!

Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit .



This blog is written with my opinions and my opinions are  presented with accuracy but not guarantees. Please talk to a professional before making any real estate, financial or agency decisions.    Gabrielle Kamahele Rhind - 2014. If you want to reprint parts of this - just email me for my permission: .


Comment balloon 26 commentsGabrielle Kamahele Rhind • June 27 2011 07:55AM
The Rent To Own Flower: You Love Them - You Love Them Not!
Rent to own is really a (here's my big word for the year ) misnomer: applying a wrong name to a person or thing. Rent to own implies that you rent for a period of time and then you own the home. But that's not what happens - renting to own a… more
Big Or Small - Have You Thanked Your Tenants Lately?!
Owning rentals, I know the value of having tenants - especiallythose that take care of my properties, do a little extra to improve them and pay rent on time. I also genuinely like the folks I rent to and want a good relationship with them - so I… more
Are You Doing Things That Good Tenants Hate?
Good tenants know when they are good. And they know when they are not appreciated. If you are a landlord and have a good tenant - consider evaluating yourself and make sure you aren't doing things that frustrate good tenants. Good tenants… more
It's All About Looks And Personality!
Before opening my own property management company I considered hiring a company to take over my personal rentals. Calling many different companies, the top question on my list was, "With your current rentals, how long have they been vacant… more
Four Headaches Under One Roof - Or Double Rent?!
One house, 4 bedrooms, near a major university. Rented to a family - monthly income is around $1000. Rented to students - $2000 a month. For some landlords - they see this situation as four headaches under one roof: having to deal with… more
Things A Property Manager Should Know
It's all too easy for landlords to "take things into their own hands" and do things the way they think it should be done - because afterall - they "own the property". It's common for do-it-yourself landlords to make mistakes,… more
Protect your home from fires ~ your "stuff" isn't more…
Excellent information to share from a fellow blogger, Dorie Dillard. With Arizona battling now it's largest fire in the state's history - we all need take extra, extra special care and follow these excellent tips to protect our homes from fire… more
Myth Buster: Does Over-Pricing Rent Have The Same Effect As Over…
The answer seems pretty easy to figure out However, many landlords, like Sellers, base their "price" on incorrect assumptions and often realize it too late after hundreds, sometimes thousands, of dollars have been lost. Here are a… more
Customer Satisfaction And Service - Is That First Or Last On Your…
Customer Satisfaction and Service. It is probably the last thing you hear property managers talk about, plan for or even think about, and it should be the first! Everyday, top of the "to do" list I ask, "What have I done for… more
Why Don't You Take Section 8?
Lots of calls lately from potential tenants who ask, "Do you accept Section 8? " For all of my current properties, the answer is no. Today, I had one person ask, "Why don't you take Section 8? " My response : An owner,… more