Frequently Asked Questions

A rent-to-own agreement — also called a lease-option or lease-to-own — is a contract where a tenant rents a property with the option to purchase it at a pre-agreed price (the strike price) during or at the end of the lease term. It combines a standard rental lease with a purchase option, giving the tenant time to build a down payment, improve credit, or test the neighbourhood before committing to buy.

The tenant pays an initial option fee upfront for the right to purchase the property. Each month, they pay base rent plus an optional monthly option fee. Both the initial fee and monthly option payments accumulate as credits toward the down payment. At the end of the lease term, the tenant can exercise the option to buy at the agreed strike price — or walk away. Use the RTOCalc Calculator to model exactly how these payments add up over time.

Buyers who need time to build credit, save for a down payment, or test a neighbourhood before committing. Sellers who want rental income while securing a future sale at a fair price. Real estate agents and mortgage brokers who can save deals that might otherwise fall through by offering a structured, transparent alternative. See how rent-to-own works.

Progressive rent-to-own is designed to move the tenant closer to homeownership through fair terms, transparent calculations, and built-in incentives like monthly price credits and option-fee matching. It differs from predatory models that are structured to benefit only the seller. See how it works for more.

With a mortgage, you buy the property immediately and begin making loan payments. With rent-to-own, you lease first and buy later — giving you time to qualify for a mortgage while building your down payment through option fees and monthly price credits. The purchase price is typically locked at the start of the agreement.

If the tenant chooses not to — or cannot — exercise the purchase option, they may lose the initial option fee and accumulated credits. Market values can also change during the lease period. That is why it is important to model the deal thoroughly using the calculator and have every agreement reviewed by a qualified real estate lawyer before signing.

Simple mode focuses on core inputs — option price, option fee, rent, monthly option fee, lease term, and mortgage rate — to give you a quick estimate. Advanced mode adds renewal terms, incentives (monthly price credits, bonus option credit), expense breakdowns (strata, utilities, insurance, property taxes), and inflation projections for a comprehensive analysis. Try both modes to see which fits your needs.

The option price (also called the strike price) is the agreed purchase price at which the tenant can buy the property when exercising the option. This price is typically locked at the start of the agreement, protecting the buyer from market increases during the lease term.

The initial option fee is an upfront, non-refundable payment that gives the tenant the right to purchase the property at the agreed strike price. When the tenant exercises the option to buy, this amount is credited toward the down payment. It is typically 2–5% of the option price.

The monthly option fee is an additional payment made each month on top of the base rent. Like the initial option fee, it accumulates as credit toward the down payment. It is separate from rent and is specifically tied to the purchase option.

Monthly price credits are a bonus credit per $1,000 of initial option fee that reduces the option price. For example, if the initial option fee is $20,000 and the credit rate is $5 per $1,000, you would receive $100/month in price credits. All accumulated price credits go toward lowering the final purchase price at exercise.

The bonus option credit is a percentage bonus applied to monthly option payments that exceed the minimum. The owner matches this percentage of the extra payments, which is credited toward the tenant's down payment. It is an incentive for tenants to invest more toward their future purchase.

Renewal terms are optional one-year extensions available after the initial lease term ends. Each renewal may require a renewal option fee and may include an appreciation adjustment to the option price. In Advanced mode, you can model multiple renewal years to see how the deal evolves over a longer period.

The calculator provides estimates based on the values you enter. Actual terms, rates, and outcomes depend on the specific agreement negotiated between buyer and seller. RTOCalc is a modelling tool — not a financial guarantee. Always consult a real estate lawyer, mortgage broker, and/or financial advisor before entering into any agreement. Browse our resources for helpful guides.

Create a free account by signing up, then click "Create Listing" from your dashboard. Fill in the property details, upload photos, and set your rent-to-own terms. Your listing will be visible to all users on the marketplace once published.

Visit the Marketplace to search and filter by city, province or state, price range, rent range, bedrooms, bathrooms, and property type. Use the country selector in the navigation bar to switch between Canadian and American listings.

Listings on the RTOCalc marketplace come from two types of sellers, and the structure of the deal is usually quite different.

By Owner (FSBO) listings are posted directly by the homeowner. These are typically private rent-to-own agreements negotiated between the owner and the tenant-buyer, without a realtor or investor in the middle. The owner already holds title to the property, so the option is written directly against the home they currently own. Terms tend to be more flexible and negotiable, and there are no agent commissions baked into the price.

By Agent listings are posted by licensed real estate agents or agencies. In many cases the agent is not selling a home they already control — instead, they represent an investor partner who will purchase the home on behalf of an approved rent-to-own applicant once the applicant qualifies. This model suits buyers who find a home they love on the open market but aren’t quite mortgage-ready: the investor acquires the property, the applicant moves in as a rent-to-own tenant, and the option to buy is set for the end of the term.

Use the Listed By filter on the Marketplace to browse one type or the other. Whichever path you choose, pre-qualify first and have any agreement reviewed by a qualified real estate lawyer before signing.

Click on any listing to view the full details. If you are logged in, you can send a direct message to the listing owner through our built-in messaging system. You will be notified when they reply.

You can upload up to 10 images per listing. Each image must be under 5 MB and in JPG, PNG, GIF, or WebP format. Images are stored securely on our CDN for fast loading worldwide. We recommend uploading clear, well-lit photos that showcase the property from various angles.

All active listings are publicly visible on the marketplace and can be viewed by anyone — including visitors who are not logged in. Only you can see your own draft or inactive listings from your dashboard.

Yes. RTOCalc’s marketplace supports both FSBO listings (posted directly by homeowners) and agent listings (posted by licensed realtors and agencies, often on behalf of investor partners — see the difference between owner and agent listings). If you want to sell your home FSBO, you can list it yourself — no agent involved, no commission — and offer it as a straight FSBO sale, a rent-to-own deal, or both. Offering rent-to-own opens you up to a wider pool of buyers who can’t qualify for a mortgage today but will be ready in 1–3 years.

A traditional FSBO sale is a one-time transaction: the buyer secures a mortgage, you transfer the title, and the deal closes in 30–90 days. A rent-to-own deal is structured in two parts: the buyer leases your home today (giving you immediate rental income), and exercises a purchase option at a pre-agreed strike price 1–5 years later. Rent-to-own works well for owners whose home has been sitting on the FSBO market without offers, or who want predictable income while waiting for a stronger sale price. Model both scenarios with the calculator to see which nets more.

Before dropping your asking price, consider opening the deal up to rent-to-own buyers. The pool of mortgage-ready buyers is small in many markets, but the pool of tenant-buyers — people with stable income who need 12–36 months to repair credit or save a down payment — is much larger. By offering rent-to-own, you can often achieve your full asking price (or higher) while collecting rent in the meantime. Use the calculator to see what your home would earn as a rent-to-own versus a price-cut FSBO sale.

No. Both for-sale-by-owner and rent-to-own deals can be done without a realtor — that’s the whole point of FSBO. You will, however, want a qualified real estate lawyer to draft and review the lease-option agreement (and the eventual purchase contract). RTOCalc gives you the tools to model the deal, list the property, and message buyers directly — but the legal paperwork should always be handled by a licensed professional in your province or state. If you’d prefer to work with a realtor, see our For Realtors page.

Often, yes. A traditional realtor sale typically costs 5–6% in commission plus 1–2% in legal and closing fees. On a $500,000 home that’s $25,000–$40,000 off the top. Selling FSBO eliminates the commission entirely; structuring the deal as rent-to-own can also lock in a higher future strike price (with annual appreciation built in) plus 1–3 years of rental income before the sale closes. Run the numbers for your specific property — the difference is usually meaningful.

Yes. The calculator is completely free with no sign-up required. Creating a marketplace account is also free and allows you to save calculations, manage favourites, and message other users. Every new account also includes 1 free listing credit, so your first listing costs nothing to publish. Additional credits are $39 each, and each credit keeps a listing active for 180 days.

Listing creation runs on a listing credit system. Every new account starts with 1 free credit; additional credits are $39 each. One credit covers one listing for up to 180 days, which can be extended before it expires. Agent and Agency tiers (coming soon) will offer unlimited listing credits with a subscription. All accounts include full access to the calculator, messaging, and favourites.

Agent and Agency subscription plans with unlimited listing credits are coming soon. In the meantime, you can purchase additional listing credits — $39 each — by contacting us.

Yes. Go to Settings from your dashboard and use the account deletion option at the bottom of the page. This will permanently remove your account and all associated data, including listings, messages, and saved calculations.

Click "Forgot Password" on the login page, enter your email address, and follow the instructions in the reset email. The reset link is valid for a limited time. If you do not receive the email, check your spam folder.

Yes. Use the country selector (flag icon) in the navigation bar to switch between Canada and the United States. The calculator defaults, marketplace listings, province/state dropdowns, and currency labels all adjust automatically for each country.

In Canada, buyers with less than 20% down payment must pay CMHC mortgage insurance, with premiums ranging from 2.8% to 4.0% of the mortgage amount depending on the down payment percentage. In the United States, the equivalent is Private Mortgage Insurance (PMI), with rates typically from 0.5% to 1.75%. The RTOCalc calculator automatically applies the correct insurance model based on your selected country.

The calculator uses the currency of your selected country — CAD for Canada and USD for the United States. Default values such as the option price and mortgage rate also adjust per country to reflect typical market conditions.

The form labels and dropdown options change based on your selected country. Canada shows provinces and territories with postal code fields; the United States shows states with ZIP code fields. Switch countries using the flag icon in the navigation bar.

No. RTOCalc is an educational tool that helps you model rent-to-own scenarios with transparency. It does not provide legal, financial, or tax advice. Always consult a qualified real estate lawyer, mortgage broker, and/or financial advisor before entering into any agreement. Explore our professional services for expert guidance.

Strongly recommended. Rent-to-own agreements are legally complex and vary by jurisdiction. A real estate lawyer can review the terms, protect your rights, and ensure the agreement is enforceable in your province or state. Both buyers and sellers should seek independent legal counsel.

Yes. We do not sell or share your personal information. Calculator inputs are not stored unless you choose to save a calculation. Listing data you make public on the marketplace is visible to all users. See our Privacy Policy for full details.

No. Calculator results are estimates based on the values you provide. Actual costs, mortgage rates, insurance premiums, and outcomes may differ. The calculator is a modelling tool designed for educational and planning purposes — not a financial guarantee.