For sellers who are having a difficult time selling a home in this buyer's market in Phoenix, renting to own may be an option, also called lease option. The advantages for sellers are that it's probable but not guaranteed that the renter/buyer will take ownership of the home after a year or more and you will have your mortgage covered in whole or in part.

Buyers as well can get into a home in these time of difficult financing by renting with an option to buy. Here is what to look for if your are considering this option.

• Buyers:
  What portion of the rent if any is going toward the down-payment or equity.
  How long will it take for you to accumulate a down-payment sufficient to obtain financing.
  What will happen if you don't meet the agreed upon time lines like the one to buy the home. How will the funds be disposed of and what will happen to your equity accumulation.
  Who will do the maintenance on the home and who will pay for major repairs.
• Sellers: many of the questions are similar to those faced by the buyer.
  Who will maintain the property and pay for minor or major repairs.
  What are the tax consequences for you.
  Who will handle the account, the payments and earned equity.
  Will you manage the property or will you hire a property manager and if so what is the cost.
  What happens if the renter cannot qualify for a loan or what if they change their minds. Will you need to pay them back their equity earned.

There are no easy answers to these questions and they need to be considered carefully because the consequences of a bad agreement can leave you with more head ache than hard cash. None the less, done carefully "rent to own"or "lease options" can be a great way to get into or out of a property in greater Phoenix, with benefits to both buyers and sellers.