How Rent-to-Equity Actually Works: A Complete Guide
Learn how Built By DAO converts 10% of your monthly rent into real equity credits, building your path to homeownership.
The Problem With Traditional Renting
Every month, millions of renters send checks to landlords. That money disappears into someone else's wealth — none of it comes back. After five years of paying $1,800 per month, you have spent $108,000 and own exactly nothing.
Built By DAO was founded to fix that equation. We believe the people who live in a building should share in its value. That is why we created the Equity Token (EQT) system: a transparent, on-chain mechanism that turns a portion of your rent into real ownership.
How the EQT System Works
Step 1: You Pay Rent as Usual
Your monthly rent stays competitive with market rates in your area. Nothing changes about how much you pay or when you pay it. The difference is what happens after your payment clears.
Step 2: 10% Converts to EQT Credits
Every month, exactly 10% of your rent payment is allocated to your personal EQT balance. If your rent is $1,500, that means $150 per month flows into equity credits tied to your unit and building. After 12 months, you have accumulated $1,800 in EQT — real value backed by the property.
Step 3: EQT Vests Over Time
Your EQT credits follow a straightforward vesting schedule. After your first 12 months of residency, 100% of your accumulated EQT is fully vested. There are no cliffs, no complicated tiers. Every month you stay, your equity grows.
What Makes This Different From Rent-to-Own
Traditional rent-to-own programs lock you into a single property at a pre-set price. If the market drops, you overpay. If you need to move, you lose everything. Built By DAO is fundamentally different in three ways.
Portability
Your EQT balance is tied to you, not just one building. If you relocate to another Built By DAO property, your accumulated equity moves with you.
Community Governance
EQT holders vote on building decisions — from maintenance budgets to renovation priorities. The more equity you hold, the more voice you have, but every resident gets a baseline vote regardless of balance.
Transparent Valuation
Because EQT is recorded on-chain, you can verify your balance at any time. Property valuations are updated quarterly by independent appraisers, so your equity reflects real market conditions.
The Numbers: A Five-Year Example
Consider a resident paying $1,800 per month:
- Year 1: $2,160 in EQT accumulated
- Year 3: $6,480 in EQT accumulated
- Year 5: $10,800 in EQT accumulated
That is $10,800 in real equity that a traditional renter would have zero of. Combined with property appreciation (historically 3-5% annually in the markets we target), your position grows even further.
Getting Started
Joining Built By DAO starts with our waitlist. Once approved, you select a property, sign an equity-building lease, and begin earning EQT from your very first payment. The lease clearly defines the 10% allocation, vesting terms, and your governance rights.
Your rent should build something. With Built By DAO, it finally does.
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