Rent-to-Own Homes Scheme


Rent-To-Buy Scam: How It Works

(with video below) There have been a plethora of home buying scams exposed by authorities and our platform in the last few years. Unfortunately, it doesn't seem the trend is stopping any time soon.

Although it may sound like a good idea, be aware of the Rent-To-Own Homes scheme (aka Rent-to-Buy scam) that is going around the real estate industry. Under the actual program, buyers hand over an upfront deposit of $10,000- $15,000 and then pay rent, with an additional fee of a few hundred dollars per week.

Buyers are locked into a contract for a few years and are promised that at the end of it, the deposit and additional fees will be taken off the price of the home which they will be purchasing. How does the scam work?

Watch the video below to see in action the Rent To Own Homes scam, exposed:

The "sellers" do not hold real estate licences and the money paid by the buyers is not being directed into a trust account. Besides, there is no guarantee the buyer could obtain a home loan at the end of the contract period.

Both parties agree on the price of the home at the start of the contract. During the contract, the house cannot be sold nor the assets liquidated. Buyers who can't get financing to buy the property at the end of the period lose all the money that was initially going towards the purchase.

houses for rent with option to buy

Rent-To-Own Scheme: How To Avoid

Don't get involved in such a deal unless you are absolutely sure the business is legitimate. If you are looking for rent to own companies, ask them for references, talk to owners who bought their houses already.

You can't afford not to do an extensive research on these deals. Just because the company owns nice offices and websites doesn't mean they are legal.

When looking for houses for rent with option to buy, ask for help only reputable specialists in the industry and avoid real estate fraud.


Rent-To-Own Scheme: How To Report:

Make your family and friends aware of this scam by sharing it on social media using the buttons provided. You can also officially report the scammers to the Federal Trade Commission using the link below:

Report To The FTC Here

How To Protect Yourself More:

If you want to be the first to find out the most notorious scams every week, feel free to subscribe to the Scam Detector newsletter here. You'll receive periodical emails and we promise not to spam. Last but not least, use the Comments section below to expose other scammers.


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selma hrynchuk
Selma HrynchukSelma is a fraud prevention specialist renowned for her expertise in private eye investigations and a remarkable partnership with law enforcement agencies. Beyond her investigative triumphs, her public speaking engagements and written works have empowered countless individuals to protect themselves and stay ahead of deceptive schemes. Selma's legacy shines as a tenacious agent of change, unyielding in her commitment to battling fraud and ensuring a safer world for all.

3 thoughts on “Rent-to-Own Homes Scheme”

  1. I’ve received two calls in the last two days from a woman who says she’s replying to our inquiry about a rent-to-own. On the last call this morning I told her that I never inquired about a rent-to-own and I knew she was a scam. She immediately hung up. Both calls came from bogus phone numbers, the first from a disconnected number at a local Air Force base, and this morning, from a liquor store. Does anyone have details on the rent-to-own phone scams? I suspect they are phishing for personal information.

  2. wilbert l brookover SrIm being scamed to own lease with Ur John and Beverly laney.a five year lease but what They dont mention in the lease is 2,000 dollar balloon Pament.there tryin to evict my family.

    I’m being scamed to own lease with Ur
    John and Beverly laney.a five year lease but what
    They don’t mention in the lease is 2,000 dollar balloon
    Pament.there tryin to evict my family.

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