Rent to Own in Aurora: A Path to Homeownership

The cost of homeownership in Aurora, Colorado, can be overwhelming for many individuals and families. With a competitive housing market and rising home prices, it can be difficult for renters to save enough money for a down payment and secure a mortgage loan with favorable terms. However, there is an alternative path to homeownership that has gained popularity over the years: rent to own. In this article, we will explore what rent to own is, how it works, and its benefits for renters who aspire to become homeowners in Aurora.

What is Rent to Own?

Rent to own, also known as lease-to-own or lease purchase, is a housing arrangement that allows renters to lease a property for a set period with the option to buy the property at the end of the lease term. Renters pay an upfront option fee, which gives them the right to purchase the property at a predetermined price within the lease period, typically one to three years. During the lease term, renters pay rent, which may include a portion that goes towards the purchase price of the property.

How Rent to Own Works

Rent to own agreements can vary depending on the terms negotiated between the landlord/seller and the renter/buyer. The lease agreement typically includes the option fee, the purchase price, and the length of the lease term. The option fee is usually a percentage of the purchase price and can range from 1% to 5%. Renters may also pay a monthly rent premium, which is an additional amount on top of the regular rent, and is credited towards the purchase price if the renter decides to buy the property.

Benefits of Rent to Own

One of the primary benefits of rent to own is that it allows renters to build equity in the property while they are still renting. The option fee and the rent premiums contribute towards the down payment, which can be a significant hurdle for many aspiring homeowners. Rent to own also gives renters more time to improve their credit score and save additional money for a down payment, which can result in better mortgage terms and lower interest rates.

Another advantage of rent to own is that it allows renters to “test drive” the property before committing to a purchase. Renters can experience what it’s like to live in the house and the neighborhood before making a long-term commitment. If the renter decides not to buy the property at the end of the lease term, they can simply walk away without any obligation to buy.


Rent to own can be an attractive option for renters who want to become homeowners in Aurora. It provides a path to homeownership that is more flexible and accessible than traditional mortgage financing. However, renters should carefully consider the terms of the rent to own agreement and seek professional advice before entering into any binding contract. With the right approach, rent to own can be a viable way to achieve the dream of owning a home in Aurora.


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