Traditional rent-to-own contracts and programs can be complex and usually benefit the homeowner. They typically require an additional “lease option fee” and bind the renter for a set amount of time before allowing them to purchase that home at a predetermined discount of the purchase price--which is often at or higher than the current market value.
By contrast, our approach at StreetCred is straightforward - 5% of your rent back as a points eligible for cash back rebates in a future home purchase.
Here are the key differences between StreetCred and typical rent-to-own agreements:
Rent-to-own sometimes requires an upfront payment of 2-7% of the purchase price of the home. StreetCred does not require any such payments.
Rent-to-own limits you to purchase the specific home you decide to rent. StreetCred lets you choose your home.
Rent-to-own is uncommon in high-rent markets because homeowners usually do not have much trouble getting a high price and quick sale on a home if they ever want to sell. This means it’s unlikely you will find many options in a large metro market.
There is no additional and hidden cost, increase in rent, or fees for those joining StreetCred.
Rent-to-own agreements may require you to be responsible for maintenance and its associated costs. StreetCred does not add any additional terms to the lease in regards to home maintenance.
If a buyer in a rent-to-own agreement decides not to purchase the home they’ve rented, all funds paid up to that point are forfeited. With StreetCred, participants carry no additional out-of-pocket risk or liability--there is no further obligation should you opt not to buy a home through us.