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Advantages and Disadvantages of
Rent to Own a Home
 Advantages and Disadvantages for the Tenant
• Advantages
• If the contract is made on the basis of option-to-purchase, the tenant will be provided with
the right to cancel the rental agreement at the end of the term.
• If the tenant has a very poor credit score, few years of renting will provide them time to
make their credit score better through other means such as credit payment on time.
• If the asking price is finalised, the tenant will then pay the price for a home which does not
include the rent payment at the end of the contract, even if the prices fluctuates in the
market.
• Disadvantages
• If the credit score and the finances of the tenant not improved by the time, the rental
agreement expires. He or she will not receive the necessary financing to own the house.
• In some rent-to-own cases, unlike the apartment, tenants are bound to make the repairs
and maintenance. They might have to pay for the association fee, insurance, and property
tax also.