To understand the difference between our INTRO program and a traditional rent-to-own agreement it is important to first understand what this agreement entails and the main reasons why it generally does not work well for the client in the long run. A great source of information that explains the rent-to-own agreement’s basics quite well and outlines its main defects is “What’s the Catch with Rent to Own Homes? 7 Reasons to Beware of These Deals” by Christine Bartsch. In its most basic form, a rent-to-own agreement is a modified lease agreement combined with a purchase option agreement of the house at a pre-determined price. In principle this allows the client to rent the house for a couple of years while a portion of their rent is saved up for a down-payment towards the purchase option, which in turn needs to be executed before it expires. Our INTRO program on the other hand is a standard lease agreement combined with a co-investment agreement of the house at a pre-determined price. And while the difference seems small, its impact on the structure of the deal and the way it works from a client perspective is huge. Let’s review each of the 7 reasons Christine advises us to beware of rent-to-own agreements (R2O) and how our INTRO program is different.
Hopefully, this has cleared up most of the concerns and why our INTRO Program is fundamentally different from a rent-to-own contract. Our objective is to make homeownership accessible to more people and to do it in a straightforward and fair manner. We believe that the only way to run a sustainable business is to offer real value to our clients and thus have satisfied customers, even if they decide not to purchase the home.