Marketing Program Raises 'Rent-to-Own' to a New Level

LOS ANGELES-Broadening a novel marketing program, apartment giant Equity Residential Properties Trust has cut a deal with locally based homebuilding behemoth KB Homes that will effectively give renters at Equity’s rental developments up to 20% of their rent back if they eventually buy a KB house.

Chicago-based Equity Residential is the nation’s largest, publicly held apartment owner. It owns 1,103 developments with a combined 227,082 units in 36 states. In California alone, it has 88 properties with 21,264 units: 48 of the developments are in the Southland, including 16 in LA County, 13 in San Diego and nine in Orange County.

Under the plan, tenants at Equity’s apartment developments can use 20% of the monthly base rent they pay over the course of their lease as a credit toward buying a house from KB, California’s largest homebuilder and one of the nation’s Top 10. For example, if a tenant pays $25,000 in rent over the course of a year or two, the tenant would have a $5,000 credit toward the down payment on a KB Home or could use the credit to pay for upgrades.