In a rent-to-own home, the landlord-seller is generally responsible for major structural and system repairs until the sale closes, and the tenant-buyer handles routine upkeep and minor fixes. That is the default, but the written agreement controls, and rent-to-own contracts vary enough that a poorly negotiated one can leave you paying for a new roof on a house you do not yet own. The repair clause deserves more scrutiny here than in almost any other housing arrangement.
The Default Split Between Landlord-Seller and Tenant-Buyer
Until the deed transfers, the landlord-seller is still the legal owner, and ownership carries the obligation to protect the structural integrity and essential systems of the property. That typically means roof repairs and replacement, foundation and drainage work, major electrical and plumbing failures, sewer line problems, and HVAC replacement when the system fails beyond what routine maintenance can address.
Your side of the ledger looks like the kind of upkeep any homeowner does on a weekly or monthly basis: replacing light bulbs, changing HVAC air filters, keeping gutters clear, lawn and shrub care, clearing a clogged drain, tightening a dripping faucet, and basic care of included appliances. The dividing line is roughly between keeping the home running and fixing it when something fundamental breaks.
The Written Agreement Can Override the Defaults
Nothing stops a landlord-seller from drafting a contract that pushes major repairs onto you. If the maintenance clause says you are responsible for replacing the roof, that language will likely hold up regardless of the general default. This is why a real estate attorney reading the agreement before you sign is worth the fee.
The type of arrangement shapes expectations too. A lease-option gives you the right to buy but does not lock you in, and sellers in these deals more commonly keep major repair responsibility. A lease-purchase obligates you to buy at the end of the term, and that commitment often shifts a larger share of repair costs onto you. If you are contractually bound to purchase, the seller has less incentive to spend on a home that is already sold in everything but name.
Watch for vague language. A clause making you responsible for “all necessary repairs” is a problem. Push for specific definitions distinguishing major from minor repairs, and name the big-ticket systems — roof, foundation, HVAC, electrical panel, main plumbing and sewer lines — explicitly on the seller’s side.
What Happens When the Contract Is Silent
If the agreement does not address a specific repair, landlord-tenant law fills the gap. Most states recognize the implied warranty of habitability, which requires landlords to keep rental properties safe and fit for human habitation even if the lease says nothing about repairs.1Legal Information Institute. Implied Warranty of Habitability In most jurisdictions, this obligation cannot be waived by contract.
Habitability generally means substantial compliance with local housing codes or, where no code applies, basic health and safety standards. In practice, that covers working heat during cold months, functioning plumbing with hot and cold water, safe electrical systems, and a structurally sound building. If the contract is silent on who fixes a broken furnace in January, the warranty places that on the landlord-seller. It is a floor: your agreement can give you more protection, but generally cannot take away these basics.
Repair and Deduct When the Owner Will Not Act
When a landlord-seller ignores a serious repair that makes the home unsafe or unlivable, many states allow tenants to fix the problem and deduct the cost from rent.2Legal Information Institute. Repair and Deduct The rules vary, but the general framework requires that the defect materially affect livability, that you give the landlord written notice and a reasonable time to fix it, and that you did not cause the damage. Some states cap the deductible amount. Check your state’s specific requirements before using this remedy, because doing it wrong can expose you to an eviction claim for unpaid rent.
Insurance on the Structure
Only the legal owner can hold a homeowner’s policy on the building, because insurable interest follows ownership. The landlord-seller should carry a landlord or dwelling fire policy covering structural damage from fire, storms, and other covered losses. You cannot take out a homeowner’s policy on a rent-to-own property, even if the agreement asks you to.
What you can and should carry is renter’s insurance, which covers your personal belongings, provides liability protection, and may cover additional living expenses if the home becomes temporarily uninhabitable. Confirm in writing that the landlord-seller will maintain structural coverage throughout the lease term. If the policy lapses and the home burns down, you could lose your option fee, rent credits, and every dollar you spent on improvements.
Protecting the Money You Spend on Repairs
Here is the risk that catches most tenant-buyers off guard: if you do not exercise your option to buy, or you cannot qualify for a mortgage when the lease ends, you typically lose everything you put into the property, including your option fee, rent premium, and every cent spent on repairs. The FTC warns that in some deals, missing even a single payment can void the entire arrangement, and the seller may not actually own the property, may be behind on property taxes, or may be facing foreclosure.3Federal Trade Commission. What You Need to Know About Rent-to-Own Home Deals
Two protections are worth negotiating before you sign. Ask for a clause that credits major repair costs toward the purchase price. Or propose an escrow arrangement where repair funds are held separately and returned if the deal does not close. Neither is standard, so you will have to ask.
Inspect Before You Sign and Document Every Repair After
A professional home inspection before signing gives you leverage to negotiate which repairs the seller must complete before move-in and which become yours during the lease. The inspection report also becomes the baseline record of condition if a dispute later arises over whether damage was pre-existing. Include a contingency letting you walk away if the inspection reveals serious defects the seller will not address.
Once you are in the home, document every repair you make. In an ordinary rental, money spent on a leaky faucet is just a cost of living. In a rent-to-own, every dollar improves an asset you do not yet own. For each repair, keep dated before-and-after photos, invoices and receipts for labor and materials, written communication with the landlord-seller about the work and any approval given, and permits and completion certificates for anything requiring them under local codes. If you later negotiate a repair credit toward the purchase price, these records back up the amount you are claiming.
Resolving a Repair Dispute
When a repair falls into a gray area and neither side wants to pay, start with written notice sent by certified mail. Identify the specific problem, cite the contract clause you believe applies, and set a reasonable deadline for a response. The certified mail receipt creates a delivery record that matters if the dispute escalates.
If written notice does not work, mediation is a practical next step, and many rent-to-own agreements include a mediation clause. If that fails, a real estate attorney can evaluate whether the landlord-seller has breached the agreement or violated habitability requirements, and advise you on whether the deal is still worth pursuing.