Posted by Steve-nc on August 12, 2003 at 19:48:25:
Kyle-
I’m not sure how you have structured you l/o; however, usually the tenant/buyer gets a credit from the rent they are paying you, which in turn goes to the purchase price. If you are not receiving your full rent, like any other tenant, you can accept the way things are or give’m the boot.
Do you have a contract? And if you do, what does it say will happen if full payment is not received. Follow through and keep the pressure on your tenant/buyer.
L/O, buyers only paying the rent portion! - Posted by Kyle (Ohio)
Posted by Kyle (Ohio) on August 12, 2003 at 17:48:46:
Hi, I L/O a property 1 1/2 years ago and now the tenants are only paying the rent poartion of the L/O, this is the 3 rd straight month they’ve done this. Anyone else dealed with this? Thanx in advance.
Did you let the T/B move in with the promiss that they would pay the OPTION MONEY monthly? Did you state this in the contracts? If so, they are breaking their lease with you. If you are not talking about the option money what else would they be paying except the rent?
What other portion is there other than rent? A L/O only consists of RENT ONLY, along with an option to buy.
Sometimes there may be a rent credit offered, that is applied towards the option price, if they exercise the option, but that is it. If they decide they are no longer planning on exercising the option, they do not get to deduct any amount of rent credit from the rent. Rent credit is only a credit towards the option price if they exercise the option. It has nothing to do with the amount of the rent they pay.
It sounds like you are saying your your tenant has a rent credit being given and no longer care about the credit and now they are deducting the credit amount from the rent. Unless your lease allows this (which it shouldn’t) they are not entitled to reduce their rent simply because they may no longer wish to exercise the option. The rent has nothing to do with it. The rent is the rent, period!
Is this what the problem is? Otherwise, I have no idea what you mean by only paying the rent portion. With my contracts, there is no “portions”. It’s ALL rent regardless whether they have rent credits or not or regardless whether they have an option or not, or regardless whether they plan to exercise their option or not at some point during the lease term.