The Expert Podcast

• We discussed this potential development a few months ago, and it’s now happening: home prices and interest rates are rising significantly.
• Opportunistic companies are promoting the rent-to-own model applied to real estate as a way to make money.
• Instead of simply renting an apartment month-to-month or buying a home (which requires high income and down payment), these companies offer rent-to-own real estate options.
• According to a Fast Company article, this model can put aspiring homeowners in financial jeopardy because the ownership is unclear.
• The property title usually isn’t in the renter’s name—they’re technically renting, not owning.
• Some of the rent payments are supposedly set aside to help the renter eventually buy the home.
• However, there’s no guarantee renters will qualify for a mortgage later, and many strict clauses exist.
• These clauses may allow the company to keep the money if the renter defaults, moves out, or if the property needs repairs.
• Rent-to-own tenants often have to cover maintenance and repairs, unlike typical renters.
• This creates a “best of both worlds” scenario for landlords: they collect rent and shift maintenance costs to tenants.
• For tenants, it might be the “worst of both worlds”: higher rent plus responsibility for upkeep.
• Financial experts generally advise: if you’re ready to buy, buy a home; if not, just rent.
• Mixing renting and owning in one model might result in losing the benefits of both.
• One example company is Divi, but this discussion is not a review or endorsement—just a caution to understand the risks.
• Rent-to-own property is not like rent-to-own small items; it’s a major financial commitment with many conditions.
• Listeners are encouraged to consider if they’re getting the “good half or the bad half” of rent-to-own deals.
• What are your thoughts on rent-to-own property? Is it a viable path to homeownership or a risky trap?