What benefit does a tenant receive from a rent-to-own agreement?

A rent-to-own agreement provides a tenant with the specific advantage of having the option to purchase the property later. This arrangement allows tenants to live in a home while also working toward ownership, which can be particularly beneficial for those who may not currently have the means for a full down payment or wish to test out living in a home before making a financial commitment to buy. Often, a portion of the rent paid may even go toward the eventual down payment, making the transition to homeownership smoother and more attainable.

The other options do not reflect the primary purpose of a rent-to-own agreement. Tenants do not have the right to rent indefinitely as such agreements are typically time-limited and focused on transitioning to ownership. While some agreements might include terms for home repairs, this is not a guaranteed benefit and can vary greatly. Lower rent costs can also occur in some agreements, but this is not guaranteed and not the main feature of a rent-to-own situation, which centers around the purchase option.