Should I use lease options?
Tuesday, June 6th, 2006The lease option is a method of selling property, most commonly used in a down market. It involves leasing the property to a hopeful buyer along with an option to buy at a set date and usually at a set price.
A portion of each month’s rent is applied toward a down payment. At the termination of the lease, when, hopefully, the down payment has been reached, the buyer gets a mortgage, and the sale is completed. With a lease option you can have all the problems inherent in renting, including maintenance and the possibility of having to evict the tenant for nonpayment of rent. These risks, however, can be minimized by getting a hefty security deposit and by carefully screening the applicant, making sure that your tenant has a previously successful rental history.




investment property