A really common question and concern from people looking at renting to own a Milwaukee house is “are you required to buy the house in a rent to own home contract ?” at the end of the rental term.
As an example…
… lets say you found a great Milwaukee rent to own home and agreed on an attractive rent to own agreement (lease option) with the seller that looked like this…
– $10k upfront
– $1,800/mo
– $200k purchase price option at the end of the 24 month rental agreement
Under that example, you have the opportunity to purchase the home for $200k within 24 months (often times you can purchase the home BEFORE the rental agreement ends with no problem).
So, Are You Required To Buy The House In A Rent To Own Home Contract / Agreement?
If the 24 months comes up and you’re just not ready to purchase the home… but you still love the home and want to live there still… just connect with the seller and see if they’re willing to offer you an extension on the rent to own contract.
Often times, if you’ve been a great renter and show a genuine intent to buy the house… the seller will work with you (it’s in everyones best interest).
If the 24 months come up and you’re not ready to buy — maybe your financing didn’t go through or your plans changed — and you don’t want to stay in the house, you can usually walk away without buying. In most Milwaukee rent to own contracts I’ve worked with over the years, the option to buy is just that — an option, not an obligation. That said, always read the fine print or talk to a real estate attorney, because some contracts include clauses where the option fee (that upfront $10k, for example) is non-refundable, and others may impose a small penalty depending on how the agreement is structured. It’s not one-size-fits-all, so don’t assume — always verify.
What Happens To The Money You’ve Paid The House Owner Up To This Point?
If you choose not to buy the house, the time you spent in the home is treated just like a rental… since you didn’t exercise your option to purchase the home.
That’s the key distinction you need to be clear on with rent to own home programs.
There are really two separate parts to every rent to own setup — and it’s important to understand both so you know exactly what you’re getting into:
- A Rental Agreement: This works just like any standard lease. You pay monthly rent for the term (say, 24 months), and the homeowner is still the legal owner during this time. You may be responsible for utilities and upkeep depending on your agreement — and that’s something I always tell my clients to clarify upfront.
- The Option To Purchase: This gives you the exclusive right (but not the obligation) to buy the home at a set price in the future — often within those 24 months. I’ve seen clients use this period to repair credit, build savings, or secure stable income so they’re ready to buy. But this part needs to be in writing with clear terms, including how much of your rent (if any) goes toward the purchase.
If you decide not to buy the home… you’re just deciding not to exercise your option to purchase the house… and everyone walks away looking at that past time as a rental.
Make sense?
Honestly, one of the biggest perks of a rent to own deal — and why a lot of folks here in Milwaukee like it — is the flexibility. You lock in a price for the home, which can be a real advantage if the market’s heating up. But if things change — your job, your finances, your plans — you’re not locked in like a traditional buyer. I had one client in Bay View who walked away after 18 months because they relocated for work — and the seller had no issue since the option wasn’t exercised. It’s always a good idea to have that kind of flexibility written into the agreement and to know what, if anything, you’re leaving on the table if you walk away.
If You’re Looking for Milwaukee Rent To Own Houses…
… check out our Milwaukee rent to own house program on this website and see our available rent to own / lease option homes by clicking the link below.
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