What is Rent To Buy

Our Story

Understanding Rent-to-Buy: How It Works in South Africa

The dream of homeownership can seem out of reach for many South Africans due to high property prices and stringent mortgage requirements. However, an alternative path to homeownership, known as “rent-to-buy,” has gained
traction since 2007 when Rent2buy was launched and in recent times even more traction, as it has become more difficult to convince a bank to approve a home loan for a buyer.
This arrangement typically involves three agreements: a rental lease and an option to purchase, combined with a future Sale Agreement. During the rental period, a portion of the rent paid is often credited towards the future purchase of the home, called the “Deposit Builder”

The concept offers a more accessible route for those looking to own property without the immediate need for a substantial down payment or perfect credit history. Here’s a closer look at the basics of rent-to-buy in South Africa.

Rent-to-buy, also known as lease-to-own, is a housing arrangement that allows tenants to rent a property with the option to purchase it after a specified period.

This arrangement typically involves three agreements: a lease agreement, an Option to Purchase agreement and a future Deed of Sale agreement.. During the rental period, a portion of the rent paid is often credited towards the future purchase of the home.

The concept offers a more accessible route for those looking to own property without the immediate need for a substantial down payment or perfect credit history. Here’s a closer look at the basics of rent-to-buy in South Africa.

Innovation-driven Solutions

Our innovative solutions are designed to address the unique needs of our clients and drive success.

Personalized Approach

We take a personalized approach to ensure that every individual receives tailored support and guidance.

Superior Customer Service

Our team is dedicated to providing superior customer service and ensuring complete satisfaction.


How Does Rent-to-Buy Work?

  1. Finding a Rent-to-Buy Property:
    • Prospective buyers need to find a property that offers a rent-to-buy option option(or subscribe to be a Rent2buy member and we will update you when we receive new Rent2buy units for sale). These properties are typically listed by developers, real estate agents, or private sellers who are open to this type of arrangement. We help make this easier for you.
  2. Signing the Lease and Option to Purchase:
    • Once a suitable property is found, the prospective buyer signs three contracts: a lease agreement, an Option to Purchase agreement and a future Deed of Sale agreement. The lease outlines the rental terms, while the option agreement specifies the purchase price, option fee (if any), and the duration of the Rent To Buy option period.
  3. Rental Period:
    • During the rental period, the Rent To Buy buyer/tenant lives in the property and pays rent as per the lease agreement. A portion of the rent, often called “rent credits or Deposit Builder,” is set aside and credited towards the purchase price. A My Budget Fitness Personal Trainer will be assigned to the Rent To Buy Tenant Buyer to assist to improve and maintain a good credit score and affordability to work towards the approval of a home loan to be applied for just before the end of the Option Term.
  4. Exercising the Option to Purchase:
    • At the end of the Option Period, the tenant has the choice to purchase the property, or walk away If they decide to buy, the rent credits/Deposit Builder are applied to the purchase price, reducing the amount needed for financing. If the tenant chooses not to buy, they may forfeit the option fee and any rent credits accumulated. The Rent To Buy Team will assist the buyer to apply for a home loan and also a FLISP/First Home Finance Subsidy, should the buyer qualify.

Watch our explainer video below for more information

Scroll to Top