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 Poplar Street is straightforward - 20% of your rent back as a cash credit towards a future home purchase.
Here are the key differences between Poplar Street and typical rent-to-own agreements:
Rent-to-own sometimes requires an upfront payment of 2-7% of the purchase price of the home. Poplar Street does not require any such payments.
2. Rent-to-own limits you to purchase the specific home you decide to rent. Poplar Street lets you choose your home.
3. 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.
4. There is no additional and hidden cost, increase in rent, or fees for those joining Poplar Street.
5. Rent-to-own agreements may require you to be responsible for maintenance and its associated costs. Poplar Street does not add any additional terms to the lease in regards to home maintenance.
6. 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 Poplar Street, 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.