Home Equity

How to Sell Your House and Rent it Back

By Tom Burchnell
sell my house and rent it back

Whether you need an influx of cash or you’re tired of paying property tax, mortgage interest, and maintenance costs, a sudden question might occur to you—Can you sell your house and rent it back?

If you’re looking to sell your home and rent it back, a sale-leaseback solution could allow you to stay in your home by renting it from a buyer.

In this article, we’ll open the door for you to do just that. Here you’ll learn the ins and outs of sale-leaseback agreements, a few of the benefits of this approach, and how you can get started today. 

Step One: Find a Buyer

You might be asking yourself, “How can I sell my house and then rent it back?” The answer might be simpler than you think. Before you can proceed, you’ll first need to find a buyer who’s interested in this type of sale. 

In this case, your best bet may be to find an investor who is drawn to:

  • The idea of quickly and easily expanding their enterprise
  • The ability to personalize the terms of a new lease 
  • The stability of a tenancy with a renter that will thoughtfully care for the property

Step Two: Settle on a Sale-Leaseback Agreement

Once you’ve found your ideal buyer to sell the property to and rent back from, both parties will settle on a purchase price and a rent-back agreement regarding the real estate. Your newly established contract will reflect this arrangement and outline the updated lease terms and conditions in detail. 

This agreement can be written by a licensed real estate agent and included in your closing documents. You’ll receive your money immediately and can use it to pay off your mortgage. The terms of your agreement should then allow the lease to begin immediately.

A major benefit for sellers at this stage? Helping you avoid a lengthy listing process with multiple showings and lowball offers. 

Plus, you’ll get all of the benefits of selling your home without having to uproot your family, change schools, or be further from friends and family. 

Step Three: Reap the Benefits

In addition to being able to stay a bit longer in your beloved home, there are several other benefits sellers can tap into when participating in a rent-back agreement.

When you decide to sell your house and rent back, you may be able to:

  • Relieve the pressure of finding a new home before the transaction closes. This will typically give you a full year to hunt for the perfect house instead of rushing into a contract.
  • Leverage your home’s market value with other investments. 
  • Conduct this transaction at any point in homeownership.
  • Convert your equity into cash flow to meet your financial goals. 
  • Relieve yourself of expensive property tax, maintenance costs, and other costly upgrades or repairs.
  • Expect to pay monthly rent based on comparable market conditions with lease terms from twelve months or more with lease renewals. 

Should I Sell My House and Rent Back?

Sale-leaseback agreements can be an excellent option if you’re looking for a new home, are planning to move but are not sure when, or want to gain access to the cash that is wrapped up in your property.

While there are other options for accessing your equity, they may have considerable downsides:

  • Home equity loans (along with HELOCs) allow you to access your equity, but they often come with stringent income and credit score requirements making it difficult if you need to use home equity with bad credit. In addition, you’ll have to pay closing costs on your loan. Finally, you’ll add to your mortgage debt and begin paying interest on a higher total balance.
  • Refinancing allows you to replace your current mortgage with a new loan, often for a larger amount. Your eligibility depends on your equity, income, credit score, and other factors. Even if you are eligible, your new loan term often means you’ll stay in debt for longer.

Sale-leaseback solutions often have lower debt-to-income requirements than traditional loans, which can allow for more flexibility as you gain access to your home equity. Additionally, some programs even allow homeowners to receive compensation for future appreciation. 

Choosing a Sale-Leaseback Program

If you need to sell your house but want to stay in it, a sale-leaseback program may be the exact solution you’re looking for. After all, given current housing market trends, your valuable equity may be at an all-time high.

Whether you’re choosing to sell your house to pay off debt or relieve yourself of mortgage payments, a sale-leaseback solution may be the option for you.

Key Takeaways

If you’re looking for options to relieve yourself of property tax or mortgage payments, selling and renting your house is a helpful solution. If you are still unsure of options to receive an influx of cash while avoiding taxes and mortgage payments after reading this article, consult a financial advisor to discuss your options.


  1. LendEDU. Best Home Sale Leaseback Optionshttps://lendedu.com/blog/best-home-sale-leaseback-options/
Home Equity
Sell & Stay
Tom Burchnell
Written by Tom Burchnell
Director of Product Marketing

This article is published for educational and informational purposes only. This article is not offered as advice and should not be relied on as such. This content is based on research and/or other relevant articles and contains trusted sources, but does not express the concerns of EasyKnock. Our goal at EasyKnock is to provide readers with up-to-date and objective resources on real estate and mortgage-related topics. Our content is written by experienced contributors in the finance and real-estate space and all articles undergo an in-depth review process. EasyKnock is not a debt collector, a collection agency, nor a credit counseling service company.