Understanding the Legal and Financial Aspects of Rent-to-Own Agreements

Modern House Autumn Park

Although often cheaper than a standard house, tiny homes can still come with a hefty price tag. If you can’t afford to pay for a tiny house upfront, it might be worthwhile considering a property loan, or a rent-to-own agreement.

In this blog, we will explore what these are, including the legal and financial implications that you should be aware of. So, without further ado, let’s dive into the world of rent-to-own agreements!

What is A Rent-to-Own Agreement?

A rent-to-own agreement is a fancy term referring to personal finance that individuals can use to purchase their tiny house. It’s an alternative to mortgaging a house, using the tiny house as security instead of the land. At Absolute Tiny Houses, our 3rd party finance provider trusts the quality of our builds and can get you a tiny house for as little as a $2,000 deposit (assuming that you are eligible to the credit and lending criteria).

Our rent-to-own option is ideal for individuals who are unable to afford the cost of our tiny houses upfront.


There are many legal aspects to take into account when it comes to rent-to-own agreements. It is important to fully understand the rent-to-own scheme that you are considering, especially as they can vary in nature. Reading the terms and conditions is a must, and having a legal adviser is strongly recommended.


At Absolute Tiny Houses, we have partnered with our 3rd party finance provider to offer loans that involve paying off the cost of your tiny house over an agreed period with an agreed interest rate. For a tiny house, repayments could range from $300 to $420 a week, but this can vary.

With our finance provider, annual interest rates range from 15.9% to 17.9% per annum, and this rate will be fixed for the term of your loan. The length of the term can be between 6-10 years depending on your repayment options.

At Absolute Tiny Houses, our rent-to- own agreements offer a personal finance route for those who prefer an alternative to mortgaging. This is a great option for those who are unable to pay for their tiny house upfront, only requiring a small deposit. To learn more about this option, or if you have any questions about our rent-to-own scheme, please don’t hesitate to get in touch with us today.

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