1. What is Rent-to-Own?

Rent-to-own agreements allow tenants to rent a property with the option to buy it later. A portion of each rent payment may go toward the purchase price. This calculator helps landlords determine fair monthly payments under Texas law.

2. How the Calculator Works

The calculator uses the standard rent-to-own formula:

Where:

• Purchase Price — Agreed future purchase price of the property
• Interest — Total interest charged over the term
• Down Payment — Initial payment from tenant
• Months — Duration of the rent-to-own agreement

3. Texas Rent-to-Own Laws

Key Provisions: Texas Property Code requires clear terms in rent-to-own contracts, including purchase price, option fee details, and maintenance responsibilities. Landlords must provide a written agreement.

4. Using the Calculator

Tips: Enter the total purchase price, any interest charges, down payment amount, and contract length in months. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is rent-to-own regulated in Texas?
A: Yes, Texas has specific laws governing rent-to-own agreements under the Property Code.

Q2: How is interest typically calculated?
A: Interest is often calculated as a percentage of the purchase price over the term.

Q3: What's a typical down payment?
A: Down payments usually range from 1-5% of the purchase price in rent-to-own agreements.

Q4: Can terms be negotiated?
A: Yes, all terms including price, interest, and duration are negotiable between landlord and tenant.

Q5: What happens if tenant doesn't buy?
A: The agreement should specify whether any payments are refundable if the tenant doesn't exercise the option.