Selling Your Home and Renting It Back in Florida: Sale Leaseback Programs vs. a Traditional Sale

A sale leaseback in Florida lets you sell your home to a company and then rent it back, so you get cash now and do not have to move right away. It can sound like an easy fix when you need money but love your house. However, you give up ownership, you start paying rent, and you lose any future gain in value. This guide compares these programs with a normal listing so Palm Beach County owners can see which path leaves more money in their pocket.

Key takeaways

• In a sale leaseback, you sell your home and become a tenant. You no longer own it, and the new owner sets the rent once the lease ends.
• Programs often pay less than an open-market sale and may add fees, so your net can be lower than a listing would bring.
• The FTC warned in October 2024 that these deals can carry hidden fees, rising rent and even eviction.
• A short rent-back of a few days or weeks after a normal closing is a different tool, handled with the standard Florida contract.
• Before you sign, compare your net from a program with your net from listing, and have a Florida attorney read the lease and any buyback terms.

How a sale leaseback works in Florida

The basic steps are simple. First, a company makes an offer on your home. Then you close the sale and get paid. At the same time, you sign a lease, so you stay in the house as a renter.

Some programs also add an option to buy the home back later. That option has a price and a deadline. If you miss the deadline or cannot get a loan in time, the option can expire.

So a sale leaseback in Florida is two deals in one. You have a sale contract and a lease. Each one has its own terms, and you need to read both.

Who offers these programs

Most residential sale leaseback offers come from private companies and investors, not from banks. Their terms vary a lot. Some pay close to market value and charge more rent. Others pay less up front.

The industry also has a rocky history. EasyKnock, one of the best known names in this space, shut down in December 2024. Before that, the Massachusetts attorney general reached a settlement with the company in December 2023 over claims that it bought homes from cash-strapped owners at low prices and rented them back at times for unfair rents. Consumer suits were also filed in several other states.

That does not mean every program is bad. Still, it shows why you should check any company closely and keep your own advisors in the loop.

The real cost of a sale leaseback in Florida

To judge an offer, look at four costs. Together they decide how much of your equity you keep.

The sale price

Many programs buy below what the home might fetch on the open market. That gap is part of how the buyer earns a return. For example, say a home could sell for $650,000 with full exposure. If a program pays $600,000, you have given up $50,000 before any fees. These numbers are only an illustration, so ask each company for its actual price in writing.

Rent and rent increases

Next, compare the rent with your current payment. Rent may be well above your old mortgage payment, since the owner needs to cover taxes, insurance and a profit. Also ask how rent changes when the first lease term ends. The FTC alert flags rent hikes as a key risk.

Fees

Then list every fee. Some programs charge service fees, closing costs, or hold back part of the sale money until you move out or buy back. Ask for a full written breakdown of what you net on closing day.

Lost appreciation

Finally, think about future value. When you sell, any rise in value goes to the new owner. If a buyback price is set ahead of time, you may pay more than the home is worth. If it floats with the market, you pay for any gain the home made while you rented.

Sale leaseback vs. a traditional sale in Florida

Now compare that with listing your home through an agent. A traditional sale exposes the home to every buyer in the market. As a result, you are more likely to get full market value.

The Palm Beach County numbers help here. In August 2026, Miami Realtors reported a single-family median sale price of $650,000 and a median of 40 days to contract. Condos and townhouses had a $300,000 median and took 69 days. So a well-priced listing can still go under contract in about six to ten weeks, depending on the type of home.

With a listing, you also pay costs, such as agent commission, title fees and Florida documentary stamp tax on the deed. However, you keep all of the equity left after those costs. You can then buy, rent or move on your own terms.

Speed is the main reason owners look at a sale leaseback in Florida. If you need cash in days, a program may close faster. But if you have a few weeks, the open market usually pays more. Our guide on cash home buyers in South Florida covers the same trade-off for straight cash offers.

A Florida sale leaseback vs. a short rent-back after closing

Many sellers do not need a long-term lease. They just need a little time to move. In that case, a short post-closing occupancy works better than a program.

The Florida Realtors and Florida Bar "AS IS" contract handles this in paragraph 6(b). If the seller will stay after closing, the parties use Rider U, Post-Closing Occupancy by Seller. That rider sets the length of the stay, any rent, deposits and who pays for damage.

The key difference is scale. A rent-back after a normal sale lasts days or weeks and follows a market-price sale. By contrast, a long-term leaseback program can run for a year or more, with rent set by an investor. If you only need time to pack, negotiate a short stay with your buyer. Our post on delayed possession after closing explains how buyers see these terms.

Consumer warnings and Florida law on sale leaseback deals

In October 2024 the Federal Trade Commission issued an alert on sale-leasebacks. It said the ads make these deals look simple and risk-free, but the fine print can hide big fees, high rent and the risk of eviction if you fall behind. The FTC advises you to walk away from pressure, read every page, and hire a lawyer.

Florida also has a law for owners in trouble. Section 501.1377 of the Florida Statutes covers foreclosure-rescue deals. Under it, a homeowner facing foreclosure who sells to an equity purchaser and keeps a right to buy back gets added protections. These include a right to cancel within three business days. The statute also treats some lease-option setups as loans, not sales.

So if you are behind on your mortgage, a sale leaseback in Florida may fall under these rules. In that case, talk to a Florida attorney before you sign anything. Our page on selling a house in foreclosure in Palm Beach County covers other options.

Questions to ask before you sign a sale leaseback in Florida

Use this list with any company. Get every answer in writing.

• What price will you pay, and how did you set it?
• What fees come out of my sale money, and is any money held back?
• What is the rent, how long is the lease, and how can rent change at renewal?
• Who pays for repairs, insurance and property taxes while I rent?
• Is there a buyback option? If so, what is the price, the deadline, and what happens if I miss it?
• What happens to my lease if you sell the home to someone else?
• Can I end the lease early, and what does that cost?

Then take the answers to a CPA or attorney. Also ask an agent for a net sheet on a regular sale. With both numbers side by side, the choice gets much clearer.

Taxes to think about

A sale leaseback is still a sale for tax purposes. Under IRS rules, many owners can exclude up to $250,000 of gain, or $500,000 for married couples filing jointly, if they owned and lived in the home for two of the last five years. That rule applies the same way when you list in the usual way.

Also note that rent you pay as a tenant is not deductible the way mortgage interest can be. So your after-tax housing cost may rise. A tax pro can run the numbers for your case.

Other ways to free up home equity

Before you sell to a program, look at other paths. Each one keeps more control in your hands.

• A home equity loan or HELOC. You keep ownership and borrow against your equity, if you qualify.
• A cash-out refinance. This can work when rates and your credit allow it.
• A traditional sale and a move. You get full market value and can rent or buy something that fits your budget.
• A sale with a short rent-back. You sell at market value and stay a few weeks while you plan the move.

Our sell or refinance page walks through how owners in Boca Raton, Boynton Beach and West Palm Beach weigh these choices.

Frequently asked questions

Is a sale leaseback in Florida legal?

Yes. These deals are legal, but they come with risk. If you are in foreclosure or default, Florida's foreclosure-rescue law may add more rules, so check with an attorney.

Can I buy my home back later?

Only if your contract includes a buyback option. Read the price, the deadline and the loan requirements closely. Many owners plan to buy back but later cannot qualify for a loan.

Will I get full market value?

Often you will not. Programs tend to pay less than a home might bring with full market exposure. Get a market value estimate first so you can compare.

How is a sale leaseback different from rent-to-own?

In rent-to-own, a renter hopes to buy a home they do not own yet. In a sale leaseback, you already own the home and sell it, then rent it back.

What if I only need a few weeks to move?

Then a short rent-back with your buyer is usually the better tool. It is written into the standard contract with Rider U, and you still get a market-price sale.

Sources

• Federal Trade Commission, Risky business: offers to cash out your home equity through a sale-leaseback
• HousingWire, EasyKnock abruptly shuts down its sale-leaseback platform
• Florida Statutes, Section 501.1377, foreclosure-rescue transactions
• Florida Realtors and Florida Bar, AS IS Residential Contract (2026 redline)
• IRS, Publication 523, Selling Your Home
• Miami Realtors, Palm Beach County August 2026 home sales

Weighing a cash or leaseback offer? A Pure Equity agent will compare that offer with what a listing could net you, with no obligation. Talk with an agent or get your home value. Buying instead? Ask a buyer's agent how a short rent-back can help you win a home.