How to Write a Rent-to-Own Proposal to a Home Owner

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Those who are interested in purchasing a home but can not yet apply for a home loan can set up a rent-to-own proposal on an available home. Rent-to-own proposals contain significantly different information from regular home purchase proposals, so preparing one requires careful research and planning. The proposal needs to cover such essentials as the final purchase price, how much of the rent will be credited toward a down payment, and what contingencies are in place should the renter be unable to complete the purchase once the lease period is over.


Step 1

Create a cover page to announce the nature of the proposal, the date, and the names of those involved in the proposal.

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Step 2

Begin the first page of the proposal with a centered title and the immediate information that pertains to the property: the name of the property owner as the Lessor, your name as the Lessee, the date, and the location of the property. The location should include such information as the street address, the city, the county, and the state.


You may present this information in a variety of ways, such as a traditional business letter: "Dear ___: The Lessee ___**_ appreciates your consideration of this rent-to-own proposal for the property located at** ****__..."

Or a memo format: "Attention: ___**, From:_ ****_, Date: **__**, The Lessee_ ****_** would like to thank the Lessor ___**_ for consideration of this rent-to-own proposal located at** ****___..."


Formality and professionalism are important. A proposal must be typed and contain absolutely no typographical errors to ensure full legality.

Step 3

Begin providing the details concerning the rental agreement and the option to purchase. Again, the format may be as an actual business letter or a memo, or you may choose to list each item by numbered paragraph.



Information that is necessary in the proposal includes: (1) the Term, which is the length of the lease period and indicates when the renter will have the option to purchase; (2) the Property, explaining what will be included in the purchase such as outbuildings, window coverings or appliances; (3) the Final Purchase Price, and whether or not you are willing to accept a counteroffer; (4) the Payment Arrangements which will reflect the amount of monthly rent that the homeowner will be willing to put toward a down payment; (5) the Financing, which will indicate the interest rate range at which the renter can make arrangements to purchase; and (6) the Escape Clause that explains what will happen at the end of the lease period if the renter is unable to complete arrangements to purchase, or if the home changes in value.


Whatever the format you choose for presenting these details, be sure to set each item above in a separate paragraph, and consider titling the paragraphs so that the homeowner can review the items more easily.

Step 4

Include any other information that pertains to the specifics of the property in a final section. If there is anything unusual or potentially problematic, be sure to mention it.


Step 5

Add a note of thanks at the end, and provide any necessary contact information. Include a polite salutation, and then sign. Unless the proposal will also function as the agreement itself, it is not necessary to include a place for the homeowner to sign and return. However, the agreement is usually a separate document to be drawn up later.


One of the best ways to prepare any type of proposal letter is to browse sample or template letters. While you should definitely attempt to construct your own, there is no harm in checking templates to ensure that you provide the right tone. Websites such as have a range of sample and template proposals that can be useful in writing your own proposal.

Things You'll Need

  • Legal details on rent-to-own proposals for your state or area

  • Agreed-on contract details to establish proposal



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