Is Rent to Own a Good Real Estate Investing Strategy in Canada? 10 Investor Advantages
- Wayne Hillier
- Aug 19
- 3 min read
By Wayne Hillier, Real Estate Investing Coach - Real Estate Investing Masters
August 19, 2025 | Edmonton, AB
Rent to own (RTO) is often seen as a tenant strategy, a path for renters to eventually become homeowners. But what many people don’t realize is that rent to own can also be a powerful real estate investing strategy. For Canadian investors, it can offer unique advantages that you won’t find in a traditional buy-and-hold rental.
If you’ve been wondering “Is rent to own a good real estate investing strategy in Canada?”, here are 10 investor advantages to help you decide.
1. Higher Monthly Cash Flow
In most rent to own deals, the tenant-buyer pays above-market rent. A portion of this goes toward their future down payment, which means you, the investor, enjoy stronger monthly cash flow compared to standard rentals.
2. Pre-Screened, Motivated Tenants
Tenant-buyers aren’t just renters, they’re future homeowners. They’re motivated to take care of the property and follow through with payments because they’ve invested in the outcome.
3. Reduced Vacancy Risk
Because tenant-buyers have skin in the game (their option fee), they’re less likely to walk away. This significantly reduces turnover and vacancy compared to traditional rentals.
4. Less Property Management Headaches
Since tenant-buyers view the property as their future home, they typically handle minor repairs and upkeep themselves. This lowers your day-to-day management responsibilities.
5. Predictable Exit Strategy
Unlike a standard rental where you don’t know how long the tenant will stay, rent to own deals have a clear timeline, usually 2-4 years. At the end, the tenant either buys the home (giving you a profitable sale) or you resell/rent it again.
6. Stronger ROI Potential
When structured properly, rent to own offers multiple profit streams:
Higher monthly cash flow
Upfront option fee
Profitable sale at the end
Combined, these can produce stronger overall returns than traditional rentals.
7. Built-In Appreciation
Since you’re locking in a future purchase price when the agreement begins, any market appreciation during the rent-to-own term works in your favour.
8. Easier Financing on the Front End
Many rent to own deals can be done with traditional financing, since you’re purchasing the property as a landlord. Over time, the tenant-buyer works toward qualifying for their own mortgage, reducing financing challenges on your exit.
9. Win-Win Reputation
Rent to own is a socially impactful investing strategy. You’re helping families who might not qualify for a mortgage today achieve homeownership in the future. That reputation can attract more JV partners and opportunities.
10. Flexibility in Deal Structure
Every rent to own deal can be customized, from the length of the term, to the option fee, to how much rent credit applies. This flexibility allows you to design agreements that work best for both you and the tenant-buyer.
So, is rent to own a good real estate investing strategy in Canada?
The answer is yes. If it’s structured properly.
For investors, it can mean higher cash flow, stronger returns, less management, and a clear exit strategy.
However, like any strategy, it’s not without risks. You’ll need to carefully screen tenant-buyers, set realistic purchase prices, and ensure the agreements comply with Canadian real estate laws.
Done correctly, rent to own can be a powerful tool in your investing toolbox, one that balances profit with purpose.
⚠️ Important Warning
Rent to own done incorrectly can be damaging for both the provider and the tenant. Without the right contracts, systems, and guidance, you risk financial loss, legal challenges, and harming families who were counting on you.
That’s why it’s critical to get proper education and coaching before starting. If you want to learn how to structure rent-to-own deals safely and profitably, join the Real Estate Investing Masters Mentorship Program at www.reimasters.ca.
Led by Wayne and Gabby Hillier — two of Canada’s most experienced and trusted real estate investing coaches — it’s the most comprehensive program in the country for building long-term wealth through creative strategies like rent to own.
Listen to Today’s Episode:
Real Estate Investing Morning Show – Hosted by Wayne & Gabby Hillier
About the Author
Wayne Hillier is one of Canada’s trusted experts in real estate investing education, specializing in Alberta’s thriving markets. Based in Edmonton, Wayne has over a decade of experience building a high-performing rental portfolio and coaching investors to achieve strong cash flow, sustainable wealth, and creative financing success. As co-founder of Real Estate Investing Masters, Wayne is a respected real estate investing coach and mentor, dedicated to helping Canadian investors confidently scale their portfolios. He is also the host of The Real Estate Investing Morning Show, Canada’s #1 daily podcast.
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