Out situation is slightly different, but there are some similarities so I'll tell you my experiences. I don't think these are typical nationwide, as a disclaimer.
We own a flat out of catchment for Dd's current school. We moved out of that and into rented accommodation when she was 1yo - we had outgrown it and couldn't sell it (-ive equity), so we rent a house.
The flat we own and the house we own are both in the catchment area for school A. There is also a catholic school (school B) right next door, but for obvious reasons it has a much wider catchment area and different admissions criteria, although it's usually undersubscribed and so you don't have to be catholic to get in. Neither of these schools are particularly good, but I liked the atmosphere in school B.
We always wanted DD to go to school C (her current school) so we've spent the last 4 years looking for a suitable house to rent in that catchment area without success. That school is very well regarded locally, so is usually oversubscribed, but is a similar walking distance to school A & B.
At the time that we did her school applications, we were also thinking about eventually buying on the other side of town eventually, where there is another lovely school (School D).
I'll get to the point now 
When we did the applications, we could put 3 choices. We put the least likely first - school C -, followed by school B (best chance of getting in), followed by D as a punt.
She got into C. She was one of 3 out of catchment admissions in an intake of 54.
As long as you're living in the house you're planning to rent, and that is your main residence, it's ok to rent in the catchment area you want a place in. Also, a couple of kids in DD's year have had to move house during the year, out of catchment. One is moving school for year 1, one is keeping her place because her mum works near the school. If you get a place and then move house, it might be more practical to move school, but if they're all oversubscribed there's no guarantee you'll get a place in the new catchment area. It's ok to stay at the original school that you have a place at anyway.
When it comes time to do applications, I'd put your first choice first, regardless of where you're living. But make sure you put at least one dead cert as an option to maximise your chances of getting a place. I've heard of people only putting oversubscribed, out of catchment schools as options and then being left with no place, even at the catchment school.
Sorry that's been so long!