A home sale-leaseback is a way to access the equity you’ve built in your home by selling it to someone else—but still living in your home as a renter. You can either sell your home to an independent buyer (with or without the help of a real estate agent), or you can work with a company specializing in residential home sale-leasebacks.
Below, we’ll explore the best residential home sale-leaseback companies, how the process works, and how to know if this route is right for you.
While initiating a home-sale leaseback with an independent buyer is possible, finding an interested party can take more effort. For most homeowners, we recommend working with a company specializing in home-sale leasebacks.
These companies are knowledgeable about home-sale leasebacks and have standard processes you can follow to make the transition from homeowner to renter smooth. Below are the three best residential home-sale leaseback companies you should consider.
Best Overall
Truehold offers a comprehensive sale-leaseback service, taking responsibility for home repairs, taxes, and insurance, which eases the burden on homeowners.
Residents also enjoy benefits such as discounts on meal delivery and groceries, enhancing the overall living experience. With Truehold, you can stay in your home while accessing its equity, making it an excellent choice for those seeking a balanced, supportive solution.
| Closing time | 30 days or less |
| Eligible homes | Single-family homes |
| Eligible markets | Select cities in Georgia, Indiana, Kentucky, Missouri, New Mexico, North Carolina, Ohio, Oklahoma, Pennsylvania, Tennessee, and Texas |
Ohio: Cleveland, Cincinnati, Columbus, Akron, Dayton
Missouri: St. Louis, Kansas City
Kentucky: Louisville, Lexington
Oklahoma: Oklahoma City, Tulsa
Indiana: Indianapolis
Pennsylvania: Pittsburgh
New Mexico: Albuquerque
North Carolina: Charlotte
Georgia: Atlanta
Tennessee: Nashville
Texas: Dallas
Best Home-Repurchase Option
EasyKnock provides a unique home-repurchase option, allowing homeowners to direct the sale and receive the full sale price minus buyout costs and fees. If the home depreciates, EasyKnock bears the risk, offering financial protection.
The company also handles home repairs, ensuring the property remains in good condition. This makes EasyKnock ideal for those who might want to repurchase their home in the future.
| Closing time | 4 – 6 weeks |
| Eligible homes | Single-family homes |
| Eligible states | All states except California, Delaware, Massachusetts, Maryland, North Dakota, New York, South Dakota, Vermont, Washington, and select markets. Enter your address on EasyKnock’s website to learn if you qualify. |
Best for Selling to Investors
Sell2Rent is a terrific option for homeowners looking to sell their property to investors while continuing to live in it. The company negotiates with investors on your behalf and takes responsibility for home repairs, ensuring the home remains well-maintained.
This service is most beneficial for those who prefer dealing with investors and need a hassle-free solution for home maintenance.
| Closing time | Over 45 days in most cases |
| Eligible homes | Single-family, townhouses, or condos |
| Eligible states | All 50 states |
A home sale-leaseback company works by selling your home to a buyer or a residential home sale-leaseback company and continuing to live in it as a renter.
If you’ve completely or nearly paid off your home, you could pocket a significant amount of cash when you sell it via a home sale-leaseback, especially if it gets appraised for more than you originally spent. Unlike a home equity loan or line of credit (HELOC), no debt is involved: Cash is yours with no interest.
The catch? You no longer own your home. Instead, you’re now a tenant with a detailed contract that stipulates:
As the homeowner, you may need to pay to appraise your house, though some residential home sale-leaseback companies have their own inspectors they use instead. The company will use the appraisal amount (or the results of its inspection) and local market data to make you an offer.
If you accept, you’ll pocket that money minus anything you still owe on your mortgage. For instance, if you owe $100,000 on your current mortgage and you’re offered $350,000 for the home, you’d make $250,000 minus closing costs.
The renting situation isn’t meant to be permanent. Sometimes, home sale-leaseback rental terms can be as short as one month. For some homeowners, that’s all they need before they can finalize a move somewhere else, like into a new home they’re just waiting to close on or a new-construction home still being built.
In other cases, home sale-leaseback companies may arrange for a one-year contract, much like a traditional rental agreement. Other companies may have longer arrangements or allow you to renew the lease multiple times. Read the fine print to understand if the contract can be renewed beyond the initial term.
A home sale-leaseback can be appealing: You get immediate access to the equity you’ve built in your home without taking on any debt, and you get to continue living in your home. But these arrangements aren’t for everyone.
Here are some scenarios when a residential home-sale leaseback could make sense—and when they aren’t the best option.
Ask the expert
This is an option that takes a lot of the “heavy lifting” off of your hands in terms of not having to find a buyer for your home or locate a new home or apartment to move into right away. Rather than selling your home and having a contingency agreement with the buyer to let you stay in your home longer, this can be a good alternative. Typically, the fees and costs of these are higher than it would be if one was to sell it through a realtor with a contingency clause, but the process is more streamlined in that these are professional companies that do this transaction all the time.
If a home sale-leaseback seems like the best fit, you’ll want to consider multiple companies (or maybe even an independent buyer). Here are a few factors to consider:
Each home sale-leaseback company has its own process, but here’s a general look at the steps you’ll take:
Remember, residential home sale-leasebacks are relatively new. You can learn more about the process at individual companies by calling and speaking to a customer service representative.
If looking for a home sale-leaseback with an independent buyer, we recommend hiring a real estate agent, who can help navigate the process and paperwork.
Once you’ve closed on your home sale-leaseback, here are some steps to take to manage it:
Ask the expert
It all comes down to what will you do with that equity you just cashed out? How does it impact your financial plan? Do you have the ability to budget out your renting costs moving forward? Did you intend to leave this home to your children and other beneficiaries? If so, that’s out the window, as you don’t own the home. You need to know these answers to make the best decision.
A sale-leaseback benefits homeowners by providing immediate access to their home’s equity without requiring them to move. It can be a useful option for those needing liquidity for various reasons, such as paying off debt, funding retirement, or covering unexpected expenses.
Sale-leaseback agreements can be long-term or short-term, depending on the terms negotiated with the sale-leaseback company. Homeowners should review the lease terms to ensure they align with their needs and plans.
In most sale-leaseback agreements, the company or investor purchasing the home is responsible for maintenance and repairs. However, it’s important to review the specific terms of the agreement because responsibilities can vary.
Some sale-leaseback companies, including EasyKnock, offer homeowners the option to repurchase their property. This option depends on the agreement’s terms and the company’s policies, so be sure to inquire about it if you’re considering a sale-leaseback.
In most cases, the company or investor purchasing the home bears the risk of property value depreciation. Homeowners shouldn’t be affected by property value fluctuations after the sale because they’re leasing the home rather than owning it.
Since 2020, LendEDU has evaluated financial institutions to help readers find the best home sale-leaseback programs. Our latest analysis reviewed 92 data points from 4 companies, with 23 data points collected from each. This information is gathered from company websites, online applications, public disclosures, customer reviews, and direct communication with company representatives.
These data points are organized into broader categories, which our editorial team weights and scores based on their relative importance to readers. These star ratings help us determine which companies are best for different situations. We don’t believe two companies can be the best for the same purpose, so we only show each best-for designation once.
Higher star ratings are ultimately awarded to companies that create an excellent experience for homeowners transitioning to renters. This includes offering online eligibility checks, competitive valuations, affordable lease agreements, and unique benefits.
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