in a nutshell, a lease option lets a potential property buyer flexibly rent a property from an investor/owner without having to buy it at the end of the lease period. a property’s price is typically agreed upon upfront by the renter/prospective buyer and property owner at the start of the lease option arrangement. however, this premium, called the rent credit, usually becomes part of the down payment for the property if the tenant exercises the option to buy the home from the property owner. naturally, lease options are excellent deals for tenants who don’t mind paying a little extra rent in exchange for the option to purchase the home at the end of their lease agreement.