Rent-to-Own How It Works in Nigeria

Rent-to-Own: How It Works in Nigeria

Forget the skyrocketing rent prices and the struggle for a monster down payment – there’s something for you as an aspiring Nigerian homeowner: Rent-to-Own (RTO)!

As a real estate wiz here in Lekki, Lagos, I’m pumped to unveil this exciting pathway to owning your crib.

Whether you’re stepping into the world of real estate for the first time or looking for an alternative to traditional home-buying methods, understanding RTO could open new doors for you.


Buckle up, because this article will break down everything you need to know about Rent To Own in Nigeria, from how it works to what to expect on your journey to homeownership. 

What is Rent-to-Own?

Simply put, rent-to-own is an agreement where you rent a property with the option to buy it later. 

This setup is a game-changer, especially for those who might not be ready for a full-blown mortgage just yet. 

RTO lets you put down a smaller, more manageable deposit upfront, then gradually chip away at the purchase price through slightly higher monthly rent payments.

It’s like paying rent to own, literally! 

Plus, RTO can be a lifesaver if traditional bank loans seem out of reach. No more battling mountains of paperwork or strict requirements – RTO offers a smoother path to owning your dream home.

How Rent-to-Own Works in Nigeria

Rent-to-own (RTO) schemes shine as a beacon of hope for many aspiring homeowners, especially here in Nigeria. 

Let’s walk through the key steps involved in a typical RTO agreement, and I’ll share why this might just be the opportunity you’ve been waiting for!

Key Steps Involved in a Typical Rent-to-Own Agreement:

Step 1: Finding an RTO Property and Seller
The first step is to find the right property and a reputable seller.

Here’s where DUO by Mixta Africa comes in! 

This Rent-to-Own scheme is gaining popularity for all the right reasons.

Mixta Africa is a trusted developer known for their reliability and transparent dealings, ensuring you’re on solid ground throughout this journey.

Choosing a reputable partner ensures that you navigate this journey on solid ground.

Step 2: Signing a Detailed RTO Contract
Once you find your dream home under an RTO scheme, the next crucial step is signing the contract.

This isn’t just any document—it’s the blueprint of your future home purchase. 

Ensuring legal clarity in this contract is paramount; it protects your interests and outlines your path forward. 

I always recommend seeking legal advice to review the terms before you sign.

This ensures everything is clear and above board.

Key Inclusions in a Rent-to-Own Contract

  • Lease Term: This typically ranges from 2 to 5 years, giving you time to save and prepare for eventual ownership.
  • Pre-determined Purchase Price: The price of your home is usually fixed from the start, protecting you from future market fluctuations.
  • Allocation of Rent Payments Towards Down Payment: Part of your monthly rent builds equity. Think of it as a savings plan for owning the home.
  • Option to Purchase at the End of the Lease: After the lease term, you have the option (but not the obligation) to buy the home. This flexibility is a key advantage of RTO schemes.
  • Potential Consequences of Walking Away: It’s vital to approach RTO with a commitment similar to traditional homeownership. If you decide not to buy, you might lose the portion of rent allocated for the down payment, which highlights the importance of planning and commitment.


Wanna take a quick peek into my thoughts on investing in rental properties?

Rent-to-Own vs. Traditional Mortgages

When comparing RTO to traditional mortgages, one of the most significant differences is the lower upfront financial commitment required in RTO. 

You don’t need a large down payment right away, making it more accessible for many people. 

However, it could mean a potentially longer journey to full ownership, with rent payments extending over several years before you transition to owning the home.

Benefits of Rent-to-Own in Nigeria

Exploring the Rent-to-Own (RTO) pathway in Nigeria opens up some pretty exciting possibilities, especially for those dreaming of owning their own home but who find the traditional routes a bit tough. 

Here are the standout benefits that make RTO a great option:

  1. More Accessible Homeownership: One of the biggest hurdles in buying a home is gathering enough money for a down payment. With RTO, this process is much easier because you don’t need a large sum upfront. Your initial deposit and part of your monthly rent go towards the purchase price, making it more achievable to gather the needed funds over time.
  1. Locked-in Purchase Price: Imagine knowing the price of your home won’t shoot up even if property values in the area do. That’s another perk of RTO. The purchase price is agreed upon at the start of your lease, so no surprises there, even if the market heats up!


You know, DUO by Mixta Africa offers the security of a fixed rent for 3 years, allowing you to budget effectively and plan for the future.

This provides stability in a market with fluctuating rental prices.

A steal right?

Let’s continue

  1. Test Drive Your Home: RTO gives you a unique chance to ‘test drive’ your future home. Living in the house before fully committing to buying it allows you to feel out if the home and the neighborhood are right for you. If something doesn’t fit, you’re not bound to proceed with the purchase.
  2. No Bank Loans Initially: If the thought of dealing with banks and hefty mortgage approvals sounds daunting, RTO can be a breath of fresh air. This arrangement delays the need for a mortgage until you’re ready to purchase the house at the end of the lease term. This can be particularly beneficial if you’re working on saving for a larger down payment.
  1. Building Equity Gradually: With each payment, you’re building equity in a home, even before you officially own it. This part of your rent isn’t just disappearing into the ether—it’s helping you secure your future!
  2. Flexibility: Life is unpredictable, and the flexibility that comes with RTO can be a real advantage. If your circumstances change and you decide not to buy, you can opt out at the end of the lease. Just remember, this flexibility comes with the responsibility to be sure about your long-term intentions before entering into an RTO agreement.


As someone who loves helping others achieve their dreams of homeownership, I find Rent-to-Own schemes in Nigeria to be a brilliant solution that can bridge the gap between renting and owning.

That’s why…..

I’ll reiterate a perfect rent-to-own scheme that you can get started with right now – the DUO rent-to-own scheme by Mixta Africa.

This rent-to-own scheme caters to both aspiring homeowners and those seeking a stable place to live with the potential to own in the future. 

Here’s why it can be your perfect fit:

  • Easy Path to Ownership: With DUO, you can secure your dream home with a smaller initial investment and gradually build equity through your rent payments. In just 3 years, you can be a homeowner!
  • Locked-in Purchase Price: Enjoy the peace of mind knowing the price of your 2-bedroom Marula Park home is fixed for 3 years. This protects you from potential market fluctuations.
  • Fast Track Your Investment: While traditionally renting an apartment offers no ownership benefits, DUO allows you to sublet your property at your preferred rate while paying a fixed rent. This creates a fast-yielding return on investment.

You’re welcome!

Marula Park apartment
A peek into the 2-bedroom Marula park home

Things to Consider Before Entering an RTO Agreement

If you’re buzzing with excitement at the thought of a Rent-to-Own (RTO) agreement, that’s fantastic!

But before you jump in, let’s take a moment to consider some important factors. 

This isn’t just about finding a lovely house—it’s about making a smart, informed decision that aligns with your long-term goals.

Here’s what you need to think about:

1. Understand the Fine Print

Just like reading a recipe before baking a cake, you need to thoroughly understand the RTO contract before signing.

Know exactly what you’re agreeing to, including the rent payments, how much goes towards the purchase, the length of the lease, and the purchase price.

If anything seems unclear, don’t hesitate to get a legal expert to look it over.

You want to ensure that your contract does not contain unexpected ingredients!

2. Assess Your Financial Stability

Ask yourself, “Am I ready to commit to buying a home in a few years?” RTO is a fantastic stepping stone to homeownership but still requires financial discipline. 

You’ll be setting aside part of your rent each month to buy the house. Ensure you’re in a stable financial position to manage these payments alongside your other expenses.

3. Future Value of the Property

While the idea of locking in a purchase price now can be appealing (hello, no surprises in cost increases!), it’s also wise to consider the potential value of the property. 

Will the area likely appreciate, or is it in a declining neighborhood? A bit of research into local real estate trends can give you a good indication of whether you’re making a sound investment.

4. Maintenance Responsibilities

Who’s in charge of repairs and maintenance while you’re renting? Some RTO agreements put this responsibility on the tenant, which means you. 

Be sure you understand what you might need to handle, from fixing a leaky tap to more significant issues like roof repairs.

5. Exit Strategy

Life can throw curveballs, and your circumstances might change. What happens if you decide not to purchase the home at the end of the lease? 

Understand the potential penalties or financial losses involved. This isn’t being pessimistic—it’s being prepared!


RTO is an amazing option that blends the flexibility of renting with the solid promise of homeownership.

It’s perfect for anyone who’s not quite ready to buy outright but dreams of owning a home one day. 

RTO offers lower upfront costs, the ability to lock in a purchase price, and the chance to ‘test drive’ your future home—all without the immediate need for a hefty bank loan.

Important considerations like understanding your contract, assessing your financial stability, and thinking about your long-term goals are also crucial to ensure that RTO is the right fit for you.

Remember, choosing a reputable RTO scheme like the Duo rent-to-own by Mixta Africa can make all the difference, turning the dream of homeownership into an exciting and achievable reality.

Don’t wait any longer! Take charge of your future and unlock the doors to homeownership with DUO’s Rent-to-Own scheme.  

Fill out the interest form to get pre-qualified and explore your options or contact DUO by Mixta Africa directly at

Author’s Note: Hi, I’m Joy – a seasoned finance professional based in Lekki, Lagos. I balance a fulfilling career with successful real estate investments in Nigeria.

Join me as I share insights on navigating the world of real estate investments in Nigeria. Let’s find your dream home and unlock financial success together!


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