The Pros and Cons of Lease to Own

Lease to Own (LTO) is an arrangement where an individual enters into a lease agreement with the property owner, with an additional "Option to Purchase" agreement. The Option to Purchase typically gives the tenant the right to purchase the property at a predefined future date for a prespecified purchase price.

LTO can be a great strategy to get properties into your portfolio and secure good tenants who will take pride in the home.

It’s a win-win, because it allows the tenant to become homeowners at the end of the term, when they may have otherwise struggled with saving up for a down payment.

But a LTO strategy can also come with risks and drawbacks.

In this video, our Investor Summit Expert Panel and I go over the pros and cons of Lease to Own.

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