What is a Rent Back? Benefits To a House Seller

When you need to get out of your mortgage but you’re not ready or able to move right away then a rent-back agreement could be the perfect solution. Read on to learn all about rent-back agreements to see if it’s the right fit for your situation.

What is a Rent Back?

A rent-back is also called a post-settlement occupancy agreement and allows you, as the home seller, to stay in your home until a specified date past closing. You, the seller, now become the renter, paying rent to the buyer who now owns your home.

Rent-backs can be helpful in situations where you need to close on your home in order to qualify for a new loan or if you are unable to make your house payments but need time to find a new place to live before you can move out. Using a rent-back can help save your credit from a dicey situation and give you flexibility in getting a new loan or buying time.

How Exactly Does a Rent Back Work?


Rent-backs are generally applied in short-term situations where the seller needs to stay in their property for a little while — it’s not meant to be a long-term solution. If you’re hoping to purchase back your home a lease-back would be a better option for you. The exact amount of time for a rent-back is worked out between you and the buyer of your home and would be written into a contract. Generally the length of time is flexible and if you are able to move before the time stipulated in the contract is up then that is usually not a problem.


The exact terms of a rent-back are negotiable and are determined after the buyer and seller come to an agreement, writing up the terms in a written, binding contract. Terms often include a refundable deposit to ensure against any damage that occurs while the sellers live in the home. Terms include the rental amount, the length of the rental agreement and matters such as refunding any unused portion of the rent if the renter moves out before the end of the agreement.

As for the price, the rent amount is generally based on the local market rate or the amount of the mortgage principal, interest, taxes and insurance.

Legal Matters

A rent-back agreement is legally binding. Just as any renter, you are agreeing to maintain and take care of the property and keep it in the same condition as of the settlement date. In cases of natural disasters or death it is extra important that all the terms are clearly written out in an agreement with nothing left in question.


It is considered to be in the best interest of the new home buyer to take care of the homeowners insurance while you take on the role of the renter and obtain renters insurance. This isn’t usually required but is a way to protect your interests during the rental period.

Benefits of Working with Gary Buys Houses on a Rent Back

Working with a traditional house buyer in a rent back agreement comes with its drawbacks. For example if you need longer than 60 days to rent your home from the new buyer then lenders may classify the home as an investment property and adjust the terms of the loan. Because investment properties usually require a larger down payment this could mean the new buyer would not be willing to let you stay in your home for more than 60 days to stay within the window a lender will agree to with a rent-back.

When you work with a non-traditional home buyer like Gary Buys Houses you don’t have to worry about middle men and lenders creating the terms. You and Gary work out a rent-back agreement together and with the flexibility of his cash offer you could have terms that allow for staying in the home for longer if need be.

Working with Gary also allows for more expertise when entering a rent-back agreement. Gary is an investor who has bought hundreds of properties in Utah and he is willing to take on the risk of renting the house back to you in order to make the home purchase work.

If you’re looking for a rent-back that can fit your unique situation reach out to Gary and get a fast cash offer and a flexible rent-back agreement today.