Rent to Own is a way to become a homeowner for those not quite ready to buy. To Buy a home you need 3 things: Satisfactory Credit History, Income to support the monthly payment, and a minimum amount of savings to put down. Rent to Own is usually offered by a creative homeowner or reseller in order to create a sale,and to avoid an open market transaction, in order to save real estate fees.
Some resellers are in effect 'middlemen' and take the tenants money, then remit most of it to the homeowner and keep some as a profit for their service. This is a risky proposition from the renters point of view. There have been instances of resellers pocketing rent and not passing it on to the homeowner, thus depriving the renter of completing their purchase
Most Rent to Own schemes are targeted toward those who want to save up their down payment by paying an above-market rent, thus using it as a kind of forced savings plan.
As a long time toronto Realtor i have upgraded many renters in homes as owners. My system makes you the owner right away, and costs the same as rent. Please call me to discuss this fu