Rent to Own HVAC – How to

Rent to Own HVAC – How to

How to get started

Step 1 – Get an Estimate for a New HVAC System

Contact a local HVAC company to get an estimate for a new heating and cooling system.

HVAC Equipment – To keep your monthly payments under control, you are going to want to stay with a basic one-for-one replacement of what you have. A rent to own program is not the time to get indoor air quality gadgets or a 20 SEER air conditioner. If you keep your sights set on a 14 or 16 SEER HVAC System, you should be able to get an affordable monthly payment.

Ductwork – Ductwork can be included in your lease purchase contract. Just remember that ductwork can get expensive quickly. Keep this to what is absolutely necessary.

New duct work

Brand – You can purchase any brand that your HVAC company carries. The major brands (Carrier, Trane, Amana, etc.) are going to be more expensive. However, if you stick to what we’ve discussed, you should be able to choose from all of the best brands and still keep the cost under control.

Gauges hooked up to a condenser

Step 2 – Submit your application to the Rent to Own company

Needed documents – This varies from company to company. Some advertise that they don’t need any documents. If you have the following items, you should be ready regardless of who you choose:

  • Copy of Drivers License (all applicants)
  • Proof of income
  • Most recent mortgage statement (See note)
  • Voided check

Note: If your rent or don’t own the property (i.e. mobile home park), it’s still possible to get rent to own. There is some extra paperwork that would need to be submitted. There is also one leasing company that doesn’t requirement ownership.

Eligibility requirements – Again, it varies by company. There is no credit check. So, your credit history shouldn’t be an issue. They will check for bankruptcies. But it isn’t disqualifying. There just may be some additional questions or verifications. You are going to need an active bank account. For some, home ownership will be an issue. Just give us a call 865-299-2290. We can discuss the rent to own options and find the right company for your situation.

Monthly payments – Obviously, the total cost of the heating and cooling system is the primary determiner. The monthly payment will also vary between leasing companies. What will the monthly payment be? In our several years of working with these companies, 95% of the monthly payments have been 200-300 dollars. On Jan 1st, 2022, all major HVAC brands raised prices 9-12%. The average monthly payment will also increase.

Down payment – One company requires a down payment, 7.5-12.5% based on the term of your lease. The other companies require you to make the first monthly payment.

How long does it take to get approval – It’s a fairly easy approval process. We can have the approval really quickly barring any issues with ownership, income, bankruptcies, etc. However, there will be some things between approval and start installation that need to be done. When we start the process, just keep the communication lines open. If we do that, we can usually get everything done in one day and be installing your new heating and air conditioning unit the next.

Step 3 – Air Conditioner Installation

From here on out your heating and cooling system installation will proceed as normal. It will include everything from old equipment removal to start up and turnover of your new system. You are not going to be able to tell the difference.

Two newly installed American Standard condensers


All manufacturer warranties apply. All of the installed equipment will be new, 10 years on all parts. One company purchases an extended labor warranty for the life of the contract as a part of the deal.

Newly installed condenser


Overall, there isn’t a lot of difference between this process and traditional HVAC financing. Everything is set up and organized for the ease of the purchaser. For homeowners that have experienced financial challenges and have bad credit, rent to own may be a good option to get a new air conditioner when traditional financing isn’t an option.