Thinking about a rent-to-own, lease-option, or lease-purchase home because traditional financing feels out of reach right now?
You’re not alone – but unfortunately, scammers LOVE this niche. Here’s exactly how to spot the traps before you sign anything.
Red Flag #1: The Rent Is Way Below Market + Tiny Upfront Fee
If the monthly payment is hundreds lower than comparable rentals AND they only want $1,000–$5,000 “option money” upfront – that’s not a deal. That’s usually a scam.
Real rent-to-own payments are almost always higher than regular rent because part of it is going toward your future down payment.
Red Flag #2: “No Credit Check!” + “We Report Nothing to Credit Bureaus”
Legitimate rent-to-own helps rebuild your credit. If they brag that nothing gets reported and there’s no credit check at all, you’re probably just renting with extra fees – and you’ll never actually own the home.
Red Flag #3: They Won’t Put Everything in Writing (or the Contract Is Vague)
Real lease-option contracts are 10 – 30 pages long and spell out:
- Exact purchase price today (locked in)
- How much of your rent goes toward the down payment
- Who pays property taxes, insurance, and repairs
- What happens if you miss one payment
If they hand you a one-page “agreement” or say “we’ll figure it out later,” walk away.
Red Flag #4: The “Seller” Doesn’t Actually Own the House Free and Clear
Ask for proof that they own it outright (or have very little owed). Scammers often “sell” houses that are in foreclosure, have liens, or are already behind on payments.
Red Flag #5: They Pressure You to Skip a Realtor or Attorney
This is the biggest one.
Anytime someone says, “You don’t need a realtor – we’ll save you money,” they’re planning to take that money themselves.
The Safe Way to Do Rent-to-Own in 2025
- Work with an experienced local real estate agent (like us at Century 21 Northwest) who has actually closed legitimate lease-options and seller-carry deals.
- Have everything reviewed by a real estate attorney (yes, spend the $500–$1,000 – it’s worth it).
- Get title searched before you put down a dime.
- Make sure the contract is recorded at the county (protects your interest).
- Verify the purchase price is locked and reasonable for today’s market.
Rent-to-Own with Century 21 Northwest
A real rent-to-own or lease-purchase can be a fantastic bridge to homeownership when done right.
But if it sounds too good to be true – lower rent, tiny upfront fee, no credit needed, no realtor allowed – it’s almost always a scam designed to collect a few “option fees” and disappear.
Don’t go it alone.
Ready to explore legitimate rent-to-own or lease-option homes in Arizona? Reach out to the team at Century 21 Northwest. We close deals the right way, and we’ll protect you every step of the way – no shady shortcuts, no surprises.
