Rentback Home Equity Review

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LendEDU rating: 3.6/5

• What we like: Sellers can prepay their lease for 1 – 3 years using their home equity, and many investors allow sellers to renew their lease for additional years.
• Accessible home value: Up to 100%
• Remain in home? Yes
• Time to fund: As soon as 10 days
• Availability: Nationwide

Founded in 2018, Rentback is a platform that provides home leaseback services to homeowners who want to sell their homes but continue living in them. It’s headquartered in Nashville, Tennessee.  

Rentback can help you access the wealth in your home without taking out a home equity loan or HELOC. It can be a good option if you want to sell your home but aren’t ready to move out yet, or don’t want the hassle of finding a new place to live. However, you do lose ownership of your home and Rentback doesn’t list all of its costs and fees on its website.

How does Rentback work?

Selling with Rentback is free, and the company even pays most of the closing costs associated with the sale of the property.

The rental price you will pay when you rent your home from Rentback is similar to the market value rent for other rental properties in your area.

If you think you’ll struggle to pay rent in the short term, you could opt for the Prepaid Sale Leaseback option. This allows you to use your home equity to cover rent costs for one to three years. But this might not be a viable option if you need your equity for other purposes.

Equity minus prepaid rent is deposited into your bank account shortly after the closing process is complete.

Here are some more details about how Rentback works:

• Sale price: Usually fair market value but can vary based on investor bids
• Cash funding: Access up to 100% of the equity in your home
• Ability to repurchase the home: It depends on the investor
• Retain appreciation over the buyout cost: No
• Lease term: Customizable based on your needs
• Covered expenses: Rentback charges a small platform fee but covers most closing costs
• Closing time: As soon as 10 days, although it may take time to find a suitable offer
• Unique features: Complete most steps online; get multiple bids for your property; completely customize your lease before you sell 

You cannot sell on Rentback if you owe more than your home is worth. Before you move forward, think very carefully about whether you’re willing to give up ownership and control over your home to a Rentback investor.

Who’s eligible for a Rentback home sale leaseback?

Rentback is available in all 50 states. You generally need decent equity built up in your home for it to be worth selling and leasing it back. 

Rentback doesn’t disclose any eligibility requirements online, including whether a spouse must be included on the application. In general, you need to meet these requirements for a leaseback agreement. 

Requirement	Details
Properties	Single-family homes and townhomes with equity
State of residence	Nationwide
Maximum loan-to-value	Not disclosed; generally 80%
Maximum debt-to-income	None
Minimum credit score	None
Minimum income	None

How much does Rentback cost?

Rentback does not charge sellers, and it pays most closing costs, which can be very expensive for many home sellers. You may pay a small fee for using the platform, but this percentage isn’t disclosed online and may vary. 

You must pay rent when you lease your house back, which means you still have monthly costs. Rent is determined based on the fair market value for rent on similar properties in your area. 

Unlike some other sale leaseback companies, Rentback gives you the option to use the equity in your home to prepay rent for up to three years. This can come in handy if you don’t want to worry about monthly housing costs for a while. 

What’s the difference between Rentback and a traditional home sale?

Rentback is a program that allows you to sell your home to an investor and then lease it back. A traditional home sale involves selling a home to a buyer without a leaseback arrangement. Both options involve selling a home, but there are some key differences between them.

Here’s a table comparing Rentback and traditional home sales:

	Rentback	Traditional home sale
Can you remain in the home?	Yes	No
What is the accessible home value?	Up to 100% of equity	100%
Option to receive future home appreciation?	No	No
Time to receive funds	As little as 10 days	30 to 60 days
Transaction costs	Lower	Higher

The main difference between Rentback and a traditional home sale is that Rentback lets you stay in your home after you sell it, while a traditional home sale does not. Rentback also covers most of your closing costs, whereas you’re usually on the hook with a traditional home sale.

Consider your specific needs and priorities when deciding between Rentback and a traditional home sale. If you need to sell your home quickly and prefer to remain in your home as a tenant for a short period, Rentback may be a good option. But a traditional home sale may be a better fit if you’re ready to move and have no reason to stay. 

Carefully weigh the pros and cons of each option and meet with a real estate professional if you’re unsure which is right for you.

Pros and cons of Rentback

Pros

• Available nationwide.

  Rentback operates in all 50 states thanks to a broad fulfillment network that helps connect sellers to investors.

• Access cash in your home.

  You can access up to 100% of the equity in your home without taking out a loan or making monthly payments.

• Can pay your rent upfront

  You can use equity to prepay rent, so you won’t have to worry about housing costs for up to three years.

• Say goodbye to homeownership responsibilities

  You will no longer be responsible for the costs of homeownership, including property taxes and structural maintenance.

• Little to no closing costs

  You can sell your home and have closing costs mostly covered by Rentback. Closing costs can be very expensive for many home sellers.

Cons

• You’ll no longer own your home

  Since you give up control over your home, using Rentback is a huge decision, and it is not one you should take lightly.

• You can’t lease it forever

  Although terms are negotiable, lease agreements generally last one to five years. You may not be able to stay in your home indefinitely.

• Rentback doesn’t clearly list fees or requirements

  Its website has limited information, and there’s no direct phone number for customer service. Ensure you understand all the terms and ask every question you can if you decide to use the platform.

• No phone number is listed on the website.

  While Rentback offers a way to call a representative once you complete the preliminary application, you can’t talk to someone immediately. 

Rentback offers a nationwide service that allows homeowners to tap into their home equity without taking out loans and even prepay rent for up to three years. 

But the service has downsides, like giving up home ownership and having unclear fees and requirements. 

For a more transparent experience, it may be worth exploring the best home sale-leaseback companies—all of which have clearer terms and better customer service options.

Is Rentback a reputable company?

Rentback is a reputable leaseback platform that acts as a broker to investors who want to buy property in your area. It partners with companies like Spruce, HouseCanary, and RentersWarehouse to help you quickly close on your leaseback agreement. 

That said, Rentback doesn’t have enough customer reviews online to paint a clear picture of what it’s actually like to use the service. If you’d prefer a platform with a stronger online presence, consider exploring top home sale-leaseback companies like Truhold, EasyKnock, and Sell2Rent.

Does Rentback have a customer service team?

Rentback has a team of leaseback specialists that can help you navigate the transaction process, understand local markets, and make sure your priorities are met. 

Once you get your initial no-obligation offer, you can speak with a specialist on the phone and get your questions answered. Rentback doesn’t disclose its number online, so there’s no way to talk to a representative on the phone unless you fill out this initial application. 

There are two main ways to contact Rentback: 

• Email [email protected]
• Fill out Rentback’s contact form on its website

Rentback doesn’t have a live chat feature. 

How to apply for a Rentback home sale-leaseback

The selling process through Rentback typically moves quickly, and Rentback does most of the work. First, you’ll need to request a no-obligation offer. This takes just a few minutes on Rentback’s website. 

You’ll need this information when you submit your initial offer request:

• Address of the property you want to leaseback
• How much you pay in HOA fees
• How much you usually pay in annual property taxes
• How much you owe on your home (if you have a mortgage)

After you submit your offer request, Rentback will estimate the fair market value of your property and act as a broker to investors who want to buy property in your area. They’ll email you an offer letter a few days later. 

Rentback will schedule a closing appointment after you’ve been matched with an investment company. You’ll sign all the closing documents to transfer the ownership of your home to the new owner. Then, you will begin renting your home.

No credit check or income screening is required to sell your home on Rentback and rent it back from the new owners. However, after your prepaid rental period is up, you may need to submit income verification and a credit check if you want to stay in your home.

What if I’m denied a home sale leaseback from Rentback?

If Rentback.com declines you, you can reapply for the service once you have addressed any issues that may have caused the initial denial. Some common reasons for denial may include low home equity, poor credit history, or a high debt-to-income ratio. 

• If your application is declined due to low home equity, you may consider waiting until your home appreciates in value or finding other ways to increase your home equity. 
• If your application is declined due to poor credit history, you may consider improving your credit score by paying off debts and making timely payments. 
• If your application is declined due to a high debt-to-income ratio, you may consider paying off debts or finding ways to increase your income.

Even if you’re denied by Rentback, other home sale-leaseback providers may be willing to work with you, so it may be worth exploring other options.

How do other home equity products compare to Rentback?

Rentback provides an alternative way of tapping into home equity that differs from traditional home equity companies that offer HELOCs, home equity loans, and reverse mortgages. 

HELOCs and home equity loans involve additional debt, while Rentback allows you to stay in your home after you sell it without any new debt. 

Rentback also differs from reverse mortgages, allowing you to borrow against your home equity and not require you to move out. But it does have repayment obligations and interest payments.

Rentback home sale leaseback FAQ

How long does it take to receive funds from Rentback?

It can take as little as 10 days to close on a leaseback agreement and receive funds from Rentback. But don’t count on this timeline, as it may be aggressive. The biggest factor influencing your timeline is how soon you can get an offer you’re willing to accept.

Do you have to keep the home in a specific condition?

Rentback doesn’t disclose any home condition requirements on its website. Because the lease agreements are completely customizable, you can negotiate ahead of time who will handle repairs — you or the new owner. You can also negotiate lease terms, utilities, and other services.

Does Rentback inspect the home?

Rentback needs to know the full market value of your home, so you will likely need an inspection before closing. You can also negotiate your home’s sales price, rental lease agreement, repairs, and more before you close and sign your agreement. 

Are there any tax implications for using Rentback?

There could be tax implications if you use Rentback. Even with a sale leaseback agreement, you’re still selling your home. This means you may pay capital gains taxes on some profit from the sale, regardless of whether you’re leasing it back from the buyer. 

What happens if my home is damaged or destroyed during the term?

If your home is damaged or destroyed while you’re leasing it, the specific terms of your lease agreement will dictate what happens next. Generally, the property owner will be responsible for repairing or rebuilding the home, and you will continue to make lease payments. Carefully review your lease agreement terms to understand your rights and responsibilities. 

Do I need renters insurance while enrolled in a program?

Each leaseback agreement is unique, so whether renters insurance is required when you enroll will depend on the specific terms of your agreement. Some landlords may require renters insurance as a condition of your lease agreement; others may not. 

Even if it’s not required, renters insurance is always a good idea. It can help protect your personal belongings if they’re stolen or damaged due to a covered event.

How we rated Rentback

We designed LendEDU’s editorial rating system to help readers find companies that offer the best home sale-leasebacks. Our system awards higher ratings to companies with affordable solutions, positive customer reviews, and online transparency of benefits and terms.

We compared Rentback to several home sale-leaseback lenders, using hundreds of data points from company websites, public disclosures, customer reviews, and direct communication with company representatives. We weighted, scored, and combined each factor to produce a final editorial rating. This rating is expressed on a scale from 1 to 5, with 5 being the highest possible score. Our take is represented in our rating and best-for designation, recapped below.

Product	Our rating
Rentback home sale-leaseback	3.6