Best Residential Home Sale-Leaseback Companies

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.

Best residential home-sale leaseback companies

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 two best residential home-sale leaseback companies you should consider.

Truehold

EasyKnock

Best Home-Repurchase Option

4.7 _/5

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Why EasyKnock is one of the best

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.

• Sell your home at 100% of the fair market value
• Maintain your rights to any home value appreciation
• You can repurchase the home
• EasyKnock covers home repairs
• No credit score or debt-to-income requirements

Home sale-leaseback details

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.

How does a home sale-leaseback work?

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:

• Your monthly rent payment
• The length of the contract (and if it’s possible to renew it)
• If you’re responsible for any home maintenance

How much can you get from a home sale-leaseback?

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.

How long do home sale-leasebacks last?

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.

Is a home sale-leaseback right for you?

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.

Home sale-leasebacks could make sense if …

• You want fast access to equity you’ve built in your home.
• You don’t want to take on any debt—or don’t have the credit score to qualify for a good rate on a HELOC, home equity loan, cash-out refinance, reverse mortgage, or personal loan.
• You want to keep living in your home, but you plan on moving in a year or two—or even in a few months.
• You like your home but are tired of paying property taxes and/or maintenance and repair costs.
• You’re worried about a market downturn that could affect the value of your home in the coming years.

Home sale-leasebacks may not make sense if…

• You don’t like renting, especially if the buyer imposes high rent costs, closing costs, and other fees.
• You want to continue living in your home for several more years.
• You have a strong credit score and could qualify for a home equity loan or HELOC.
• You expect your home to increase in value in the coming years.

Ask the expert

Kyle Ryan

CFP®

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. 

How to decide which home sale-leaseback company is best for you

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:

• Lease terms: Think about how long you would like to continue living in your home. Find a company that offers contracts with that timeline.
• Location: Residential home sale-leasebacks are still relatively new. Not every company operates in every city or state.
• Costs: Home sale-leasebacks generally include fees. Research each company’s fee structure to understand exactly what you’ll pay at closing—and also research which ongoing costs (repairs, property taxes, HOA fees, etc.) you may be responsible for.
• Closing time: If you need cash fast, prioritize the home sale-leaseback company with the fastest closing time. Keep in mind that it’s still a traditional home sale, which may take at least a month. If you need money faster, consider a personal loan.
• Customer reviews: Read reviews from actual customers to learn how they felt about the closing process—and how they’ve felt about the ongoing relationship with the company as their “landlord.”
• Buyback options: You may be able to include a buyback option in the contract. If you need quick access to cash now but hope to own the home again down the road, you’ll want to make sure there’s an agreeable buyback clause in the paperwork.

How to apply for a home sale-leaseback

Each home sale-leaseback company has its own process, but here’s a general look at the steps you’ll take:

1. Fill out an application online. The best residential home sale-leaseback companies have easy-to-use online platforms. Input the basic information, such as your address, to get started.
2. Get an appraisal. As the homeowner, you may need to get an appraisal. However, some companies may not require an appraisal and may instead rely on neighborhood data or its own internal inspection to make an offer.
3. Wait for an offer. The company will review all the data you submit (and the data it collects) and make an official offer. Review the offer details, including the price they’ll pay for the home, the duration of the rental agreement, and your rent costs, before signing.
4. Sign the offer. If you agree with the terms and conditions, sign the agreement and follow the company’s next steps before closing.

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.

How to manage your home sale-leaseback

Once you’ve closed on your home sale-leaseback, here are some steps to take to manage it:

• Switch from homeowners insurance to renters insurance: Cancel your homeowners insurance policy and find a renters insurance policy that meets your needs. This should save you a lot of money each year.
• Set up autopay for your rent, if possible: Work with your home sale-leaseback company to determine how to pay your rent each month. The company may have an autopay feature. If not, schedule a reminder in your calendar to make your monthly rent payments so you don’t incur any late payment fees and/or negative marks on your credit report for missed payments.
• Be smart about your cash: When you sell your home, you’ll receive a large chunk of change (minus whatever you still owed on the home). If you aren’t immediately spending it all to pay down debt or cover emergency expenses, put it in a high-yield savings account or certificate of deposit—or even invest some of it in relatively safe investments.
• Form an exit plan: If your home sale-leaseback is short term, you’ll want to start planning ahead for your impending move. Find a new place to live, if you haven’t yet, and arrange for movers before the time comes.

Ask the expert

Kyle Ryan

CFP®

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.

FAQ

How does a sale-leaseback benefit homeowners?

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.

Are sale-leaseback agreements long-term or short-term?

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.

Who is responsible for home maintenance and repairs in a sale-leaseback?

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.

Can I repurchase my home after a sale-leaseback?

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.

What happens if the property value decreases in 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.

How we selected the best residential home sale-leasebacks 

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.

Recap of the best residential home sale-leaseback companies