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rent to buy a lease option strategy

Rent to Buy – What makes it a near perfect UK Lease Option Strategy?

What is Rent to Buy?

‘Rent to buy’ or ‘Rent to own’ is a simple lease option agreement allowing a potential buyer to rent before they buy. Rent to buy is exciting investors in the UK. Well established in many English speaking countries including the USA and Australia, rent to buy offers those who would like to buy their own home a step up on the property ladder. It is a powerful strategy for the investor who wants to increase cashflow or feels ready to retire.

Rent to Buy – Other Often Used Names

Rent-to-Buy (when talking about buying a home) is also known as Rent to Own, lease-to-own and lease with option to buy. Cooperative options can also be used to set up a neat rent to buy scheme between a motivated seller and tenant buyer. Cooperative options, or assisted sales, are best used when someone else owns the property the investor wants to sell through rent to buy.

A lease purchase could also be termed rent to buy, but with an important difference – a lease purchase obligates the buyer to buy, whereas a lease option with rent to buy does not.

How Rent to Buy Works – Rent to Buy Schemes

In a rent to buy scheme the lease option contract gives the potential buyer a legal right. The buyer (often a tenant buyer) has the freedom or right to buy the lease optioned property at an agreed price within a certain time period. In order to keep this legal right, the buyer must make monthly payments to the seller and care for the property as if it were their own. This is broadly how rent to buy schemes work in the UK.

Rent to Buy – A Perfect Strategy for Property Investors?

Rent to buy or rent to own can be used to sell your property to a potential home owner or another investor. A rent to buy agreement can be set directly between the owner and tenant buyer, for a fee, using a cooperative option.

Cooperative options are powerful because they allow investors to generate cash quickly, even in a very challenging housing market. If cooperative options interest you consider our cooperative options courses, training and education. Our home-study course, called “Using Cooperative Options for Fast Profit (and to help sellers and buyers move on)” may be just what’s needed to get rent to buy working.
Tenants buying with a rent to buy scheme are willing to pay more.

Tenant buyers are willing to pay more because they benefit from rent to buy and the lease option agreement. Consider the following:

  • The purchase price is fixed by the lease option and won’t change over the term.
  • The tenant-buyer has the choice to buy or not to buy and can decide when is the best time for that.
  • The tenant buyer can treat the house as home from day one.
  • Move in is usually much quicker than in a conventional house sale.

How does rent to buy benefit the investor?

There are many important reasons for the UK investor to consider rent to buy. The benefits of using lease options with rent to buy are huge.

  • Tenant buyers will typically pay a deposit when they move in – usually 2 – 5% of the agreed purchase price.
  • The tenant buyer is willing to pay the owner above market rent.
  • Tenant-buyers are often willing to pay more than the property is currently worth because the investor or owner is giving flexible buying terms.
  • The tenant is motivated to care for the property, which is viewed as a home rather than simply a place to live, which results in lower maintenance costs.
  • There are fewer void periods with a rent to buy home or property.
  • If the tenant buyer defaults on the lease option agreement, the owner can keep the money paid up front and the extra payments made during the term, as long as that is made clear in the option agreement.

Perhaps we can help

At Lease Options Made Simple we are often offered individual property and portfolios by investors who want to move on. If selling your property to us through a lease option, or want help with using a rent to buy scheme in the UK seems attractive, please feel free to contact us.

Using rent to buy is rewarding

Helping tenant-buyers (often first-time buyers) with rent to buy is rewarding. Why? Tthe financial benefits of rent to own are impressive. Rent to buy gives the busy investor more time. Cooperative options gives the investor fast cash and the satisfaction of helping others move on. Tenants who are interested in buying through rent to own or rent to buy are more disciplined, motivated and less demanding when it comes to maintenance issues.

Rent to buy and housing market conditions

Rent to buy as a strategy works in any housing market conditions. Rent to own helps motivated buyers, and motivated buyers are always around. Rent to buy allows first time buyers to move in, settle down and start enjoying their own home without a mortgage. If the tenant buyer is unable to secure a mortgage in view of strict lender requirements, you can give them time until the best time for them to stop renting and buy.

If you are interested in rent to buy and rent to buy strategies in the UK we can help. We can also help you find and work with the right tenant buyers. Why not sign up for regular updates from our blog, and if you are really serious about using lease options to build wealth why not consider investing in our Lease Options Made Simple Home Study Course?

You could sell property you already own using rent to buy

If you are tired of property or never really wanted to be a landlord or landlady, rent to buy could be perfect for you. Why not consider contacting us at Lease Options Made Simple and we will be pleased to help.

Talk to us about your lease option goals and we’ll share our strategies

If you are looking for success in using rent to buy schemes or lease options in the UK and want to use lease option strategies to profit from property, please let us know. We are always keen to hear about the goals and the success of our students who benefit from our lease options training and education. We will be pleased to help you too. As far as property options go, there is one you just wouldn’t want to miss – Rent to Buy.

36 Responses to Rent to Buy – What makes it a near perfect UK Lease Option Strategy?

  1. Marina Rickard says:

    This excellent website definitely has all the information and facts I needed about this subject and didn’t know who to ask. Now I do.

    I have to say the online chat option at the bottom of the page is really innovative and useful. Great stuff.


  2. Mick says:

    Great post Mark!

    Some useful information here, that I will definitely be sharing. For those young people looking to jump on the property ladder sooner rather than later, I think the rent to buy is an open option which should be considered heavily. Will need to research more! Thanks!

  3. John says:

    I am particularly interested to learn more about how rent to buy benefits the investor. It seems like a near perfect lease option strategy.

  4. Adam Jones says:

    I love the effort you have put in this website and the fantastic lease options articles and blogs. Keep them coming! regards

  5. Steven Casy says:

    Hi Mark, this is an excellent blog on UK Lease Options particularly rent to buy strategies. It is really helping me with my lease options journey.

    All the best

  6. Rebecca Lloyd says:

    Rent to Buy! Excellent Lease Option strategy and superbly highlighted by your websites blog. With your help, I have made ten thousand pounds in 6 months since we started offering properties we had on option to tenant buyers and I am so excited about earning another ten thousand before the end of the year.

    Thank you Mark.

  7. Kelly Waugh - Property Investor says:

    This is one of the most exciting articles on your site. It explains how rent to buy works, explains the benefits to the landlord and to the tenant and gives an outline on how this near perfect strategy can be put in to practice.

    I have gained immense knowledge from your blogs and I hope you keep publishing many more to come.


  8. Tina says:


    I think this is an excellent article on lease options and rent to buy. I agree as well that rent to buy is the near perfect lease option strategy for UK investors.

    The one question I have is how do I get started?!


  9. Mary Davis says:

    Rent to own seems to be a powerful way of putting lease options to good use. With the mortgage market the way it is right now I can see why so many people are turning to this method of purchasing. I am not surprised investors are looking at it as the perfect investing strategy.


    • Mark Jackson says:

      Hi Mary,
      Thank you for taking the time to comment. I strongly believe in the power of lease options and rent to own is a great example of their flexibility. If you have a rent to own deal you wish to discuss, feel free to drop me a line on mark at lease options made simple dot co dot uk

  10. Michael Tagliavia says:

    Hi Mark and the Lease Options Made Simple team,

    What a pleasure to read your site. Every lease option article is packed full of information for the budding investor like me. Keep up the property options blogging.

    Many thanks


  11. Sarah Nawrat says:

    Fantastic rent to own information Mark. It absolutely explains why as a lease option investor the rent to own strategy is near perfect. Look forward to exploring the site in more detail – just hope my boss doesnt catch me!!

    Best wishes


  12. Roy Pennington says:

    This is a fantastic website and thank you for continuing to post useful blogs here. You are absolutely right, rent to own is growing so fast. I see adverts in my local paper every day for people looking for houses they can buy in this way. I guess as a lease option investor it really is the near perfect strategy.

    All the best


  13. Naomi Watts says:

    Hi Mark,

    Similar to Peter Mycroft, I have a lease option on a property at the moment that I want to do a rent to buy on. Finding suitable rent to buy tenants is proving difficult – do you have any tips?

    Naomi Watts

  14. Paul Ackerman says:

    Hi Mark,

    Everything I have read about property options has been positive. But there must be downsides somewhere. What do you think are the pitfalls of rent to buy as a near perfect lease option strategy?

    Look forward to hearing from you

    Paul Ackerman

  15. Fabian Conable says:

    Great site Mark. Hope to catch up with you and Wendy at another event in the near future.


  16. Stacey Groves says:

    Hi Mark,

    I have been reading about Rent to Buy as myself and my partner are looking to get on the property ladder as soon as possible. But of course, like most first time buyers we do not have a large enough deposit to be able to get a conventional mortgage right now. We are prepared to pay a higher rent if it helps us achieve home ownership and especially if we can finally begin to look after a house like it is our own home. There seems to be some really positive comments about rent to buy on your website. Can you point us in the right direction to finding a rent to buy home? We live in Reading by the way.

    Hope to hear from you

    Stacey and Paul

  17. Peter Mycroft says:

    Very interesting article Mark. I have some questions though:

    What do you do if a tenant buyer decides not to buy at the end of the term?

    How do you find willing tenant buyers?

    If a tenant buyer is having credit problems, how can Rent to own help them?

    Look forward to hearing from you.


  18. Richard Baines says:

    Hi Mark,

    I am finding it very difficult to find willing vendors who will work with me on rent to buy property. Do you haveany suggestions on how I can find some?

    Richard Baines

  19. Zoe Harmer says:

    What a great lease option site for investors. I am very keen on learning more about lease options and this is a great resource for people like me. Great work.

    Zoe, Birmingham.

  20. Craig Laudon says:

    Very useful lease options blog. I’m very interested to see how rent to buy booms in the next few years and I think with your lease options strategy your investors will be very succesful.


  21. Gina Cross says:

    I have wanted to know what a near perfect lease options strategy is for some time. Thankfully I have discovered rent to buy through lease options made simple. Thanks Mark for the info.


  22. William Matthews says:

    I find it hard to believe that so few people know of the power of rent to buy. For any serious lease option investor they have to have this tool in their armoury. I completely concur this is the near perfect uk lease option strategy


  23. Samantha Johannson says:

    Hi guys,

    I am very interested in learning more about rent to buy. I think you are absolutely right. Rent to Buy is a near perfect UK lease option strategy. My interest with this lies in offloading my modest portfolio without suffering from any negative capital gains tax issues and living a quieter life for a while.

    I have willing tenants already in the properties as well. Perhaps you could help me achieve this?


  24. Ian Jones says:

    Great site, really useful rent to buy information. Thank you.

  25. Alice Hayden-Smith says:

    Great site Mark and thank you for sharing this information on Rent to Buy. I wanted to catch you at your event at Heathrow last year but couldn’t make it unfortunately. Are you doing any more this year? Like everyone else I want to know more about how I can get a 4 figure sum drop in my bank account please!!



    • Mark Jackson says:

      Hi Alice, great to hear from you and thank you for your kind comments.
      What a shame you couldn’t make it to Heathrow, we had a great weekend discussing how to make lease options work in the UK. We do have an audio version of a closed-door one day event here which I’m sure you will enjoy.
      Kind Regards,

  26. Cameron Jameson says:

    Hi, my name is Cameron and I want to offer rent to buy on a couple of my existing properties. I can’t be bothered with the maintenance calls all the time and I could do with a couple of grand in my pocket right now. I know atleast one of the tenants is interested in doing a rent to buy.


    what happens if the tenant pays a ‘deposit’ of say £4k and then decides after 12 months they dont wantto buy any more and want to leave. Do I have to give them the money back?

    Hope you can help.

    • Mark Jackson says:

      Hi Cameron, what would you like to see happen? What did you agree from the outset?

      It is important that both you and the tenant share the same expectations and understanding when entering in to a rent to buy agreement.

      One of the last chapters of our e-book explores this strategy in more detail. It may be a useful reference for you.


  27. Bob McManaman says:


    I am not sure I see how rent to buy works fully or perhaps I havent read enough.

    If I agree to take a lease option on a property am I allowed to then offer it on a rent to own or do I need specific paperwork to safeguard myself?


  28. Mira Lansford says:

    I was interested to read why rent to buy is such a powerful lease option tool. It seems so simple but I am sure there must be pitfalls. Have set a target of reading all your articles in the next couple of weeks so I can get more useful information.


  29. David Banahan says:

    Great site, so much useful information. I sealed a rent to own deal only yesterday that made me £5,000 in one day using your strategy. Now I can take the wife on a much deserved holiday this year.

    Thanks again.

    D Banahan

  30. Paul Rajewski says:

    Hi Mark,

    Fantastic site. So much useful information on the power of lease options. Will keep checking regularly for updates.


  31. Mark Pattenden says:

    I am interested in property investing and I am studying lots of different ways to do this. I know there are many lease options out there and I am looking to educate myself.

    One of the lease options that I have been told about is where the investor simply takes over the mortgage from someone and rents it back to them at a higher price than what the tenant was paying before hand. I am a bit confused to why someone would do this. Maybe you can shed some light.

    If you can send me details on all the different lease options that there are and how it all works, I would greatly appreciate it.

    • Mark Jackson says:

      Hi Mark,

      Thanks for your lease option question and I am delighted to provide further information for you here.

      In the UK SARB (or sale and rent back) is now subject to certain regulations and legislation. Anybody wishing to buy a property and then rent it back to the owner would be falling into this category. Now, of course in the case of a Lease Option there is a contract which allows the buyer to buy, and obligates the seller to sell, but the sale has not yet been completed. This is a conditional contract. I personally would never recommend entering into such an agreement and allowing the owner to remain in the property. Besides opening yourself up to a whole range of issues and problems, quite simply I believe the psychology of a transaction of this nature is wrong.

      You have to ask yourself about the motivation of the seller in this situation too. Sale and Rent Back properties are usually sold by those who have equity, (we are looking at huge discounts from market value) but can’t afford to pay a high monthly amount and might include, for instance, those who have retired, accumulated unsecured debt and want to use locked up equity in the home to pay it off. They may have lost a source of income and simply can’t afford to continue paying a mortgage, buy may qualify for local housing allowance or other benefits. They want to stay where they are. Lease options are not the right tool to meet this need. In some cases benefits may cover a higher rent than the mortgage payment, but councils will as a rule not pay benefits to those who are remaining in a property they own. This is not a strategy we could endorse.

      If you would like to know about the different types of options why not take a look at our Lease Option Investor Handbook? You will find a good overview of how you can use options in property investing, whilst avoiding the pitfalls.

      Best regards,


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