rent to own option to buy a property in dubai

Do you have an insatiable desire to own a property in Dubai? We have a perfect option for you! Did you know that you can rent a property to purchase it later? No? Yes, you can! It is all possible with the government’s option to rent to own in Dubai. This scheme can be a good option; we will clarify everything about it in our article.

What Is Own-To- Rent Scheme in Dubai?

Simply put, it is an agreement between a developer and a buyer who rents a property intending to buy it later. Here are some more details about this process:

  1. A buyer and a developer will consent to use a down payment equal to one month’s rent.
  2. With this arrangement, a buyer can pay rent and simultaneously “save” for a down payment.
  3. Some plans have a 20-year time horizon or more. The property is paid off by making monthly payments to the developer rather than obtaining a mortgage, and the down payment is only 5% or less.
  4. It is necessary to make a down payment (even if it is substantially less than the 25% down payment plus additional up-front costs required to obtain a mortgage).
  5. The buyer can either buy the house or end the agreement when the predetermined period has passed.

Types of Rent-to-Own Agreements

Now that we have understood what rent-to-own means, it is time to delve deeper into the matter and discover the two types of this agreement.

Option to purchase

In this arrangement, the seller and buyer mutually agree upon an option fee, which the buyer pays in exchange for obtaining the right to purchase the property in the future. If you decide not to make the purchase, you lose the money you have already paid.

Purchase agreement

The difference is that both parties agreed on all terms before. They either set a price for purchasing the property or decide to evaluate it in the future at a commonly agreed-upon date.

Steps To Follow with The Rent-To-Own Scheme

The rent-to-own scheme will take some steps before you can close the deal. These are the steps to take:

Choose a property with this scheme.

First, you need to search for a property you can rent to buy later. You can consult an agent and check online to make this process easier. Remember that the property you choose needs to fit your needs regarding your budget, lifestyle, and more.

Pass the screening phase.

As with all property schemes, the owner has the right to evaluate prospective renters. Therefore, he needs to ensure they meet specific criteria, such as a minimum income requirement, a favourable credit history, and the capacity to make a down payment.

Settle upon the term and the type of agreement.

Once you pass the screening process, you need to discuss the terms (purchase price, rental period length, and monthly payments) with the developer or owner and choose one of the rent-to-own agreements we have mentioned.

Advantages and Disadvantages of Rent to Own Scheme

Like any scheme involving money, there are a lot of advantages and disadvantages to the rent-to-own scheme. Let us discuss them down below.


The scheme is very affordable.

With affordable monthly payments, you are quickly building equity in a specific property. You can use that equity to buy the property at a later date. Moreover, you can buy the property with just a small down payment. You will be able to pay the rest at a monthly rate. This payment option, put together, makes the own-to-rent opportunity a pretty affordable scheme.

Opportunity to assess the risks of investing in the property

One of the most significant advantages of the rent-to-own scheme is that it offers you the chance to test the property before making a final decision. After living there for a while, you can figure out whether it is a good option for a lifelong investment. In other words, there is low risk involved in this kind of scheme.

You can improve your credit score.

Rent payments made on time and other signs of financial responsibility can help tenants who opt for these programs raise their credit scores.


You will have to pay a high monthly rent.

Though the rent-to-own scheme offers excellent options for people who want to own a property, it can mean paying a higher monthly rent. The reason is that a portion of the price goes to the purchase price.

The possible penalties you will have to face.

If the buyer decides to buy the property by the end of the agreed-upon period of rent, he might face penalties if he cannot abide by that.

Bear the responsibility of maintenance.

With the rent-to-own option, the tenant becomes responsible for any costs related to maintaining the property. These costs can be high in some cases.

In Conclusion

To sum up, the rent-to-own option can be excellent for tenants who cannot buy the property immediately. However, it would help if you considered all the pros and cons of such a scheme before signing the agreements. Consult a trusted property agent who will explain this program’s ins and outs and guide you until you make your final purchase.

Have you heard of the own-to-rent scheme before? Is it a good option for you? You can share all your ideas in the comment section below.