When it comes to living in an apartment, what are the different payment options and how do they work?

Question

I've heard of renting apartments, rent-to-own apartments, and apartments that you can buy like a house (with a mortgage). Are there other options? What is a "rent-to-own"?

Answer 1

Renting, of course, is you paying the landlord a monthly fee for the use of the place.  You have no ownership rights.

Buying the place is done with condo's.  In this case you own everything within the walls of the place (the common areas and pipes between the walls are owned by the association) and you get a loan to buy the place and pay off the loan like any mortgage.

Rent to own is where you are renting a place but you also have the option to buy the place at a specified price and a specified time in the future.  You may pay extra rent (if the market rent is $800 you may pay $1000, for example) but this extra rent goes toward your downpayment if you buy the place.  You also would have to typically pay a fee to be given this option and you can decide not to exercise the option when the time comes.