a lease to own agreement, also called a “rent to own agreement” is a contract signed between a landlord (or property seller) and a tenant that permits the tenant to rent the property for a duration of one (1) to several years, with the added option that the tenant can purchase the property at the end of the term, if they so choose. the agreement is a popular option for tenants that are looking to purchase a home, but due to financial constraints cannot do so in the current moment. subjects and conditions that the parties to the agreement typically negotiate and discuss include: the average term of a lease to own agreement is between one (1) and three (3) years, although any length of time can be negotiated. additionally, the tenant will be looking to build up a down payment through each subsequent rental payment, as an agreed-upon portion of each payment will accrue in a credit. an option fee is a percentage of the home purchase price that is agreed upon before the signing of the lease.