Renting to own has advantages and disadvantages for the buyer as well as the seller. Sellers who have bought a new house will have relief from paying two mortgage payments at once, by selling off the old house. In today’s housing market with too many homes for sale, their best option may be to sell the house through the rent to buy method. Buyers who can't yet afford a house may be able to get one more quickly. This is beneficial to both as the seller gets his money in a limited time of 2 to 3 years whereas the buyer rents the house which he would purchase later without down payment.  The buyer gets the opportunity to repair his credit by paying regular payments for the house and saving the amount for down payment at the same time under the lease option.

The steps involved in this process are:

1. Do a through research to find the right rent to own program that suits your needs and circumstances. The Internet has a wealth of information on various rent to own programs with different terms. There may be low down payment or no down payment at all.  The buyer will be required to pay higher rate of interest and a higher monthly payment.  The buyer has the right to buy the house but has no obligation to buy it.  This way he gets to live in the house which he will own later.
2. The buyer has to do an inspection of the property and make sure everything is present in the house as mentioned in the description. Before signing the contract, the buyer should understand every term and condition of the rent to own contract.  He should clarify all doubts in this regard otherwise he may be at the losing end.  There is a rent part and another part called the option to buy the home later at a price agreed upon. This price will remain unchanged irrespective of market fluctuations.  The rent amount and the option fee and the additional rent premium should be clearly mentioned with the deadlines and the penalty for delay.
3. The seller should make enquiries about the buyer about his credit worthiness and satisfy himself about the financial capability of the buyer. The terms must be negotiated between the buyer and the seller before preparing the contract.
4. It is advisable to get legal or real estate finance professional to prepare the lease option contract.  
5. The buyer occupies the house upon signing the agreement and paying the option fee and starts paying rent and the additional rent premium. The buyer also must maintain the house in good condition.
6. The seller holds the title to the house and pays the taxes till the date of expiry of the lease agreement.  
7. Both parties should abide by the terms of the contract and if anyone fails, the other can contest in a court of law.
8. The buyer can change his mind and decide not to buy the house, as per the lease option contract.  The buyer forfeits all the payments made till then and the seller is entitled to all the payments.  

The buyer and seller should strictly follow the steps to a rent to own home process to make it a win-win situation for both.