Posted by JohnBoy on December 02, 2000 at 16:53:40:
I would not just offer any rent credits. You may not need to give any. Let the tenant.buyer ASK for one and if it is something you’re willing to give then go from there. It also gives something for the tenant/buyer to negotiate and feel like they are making a better deal for themselves. Some will, some won’t, so why just freely give it if you don’t have too?
I would keep the lease option agreement down to one year terms. If you needed to you can always grant them another year and depending on what you want and the tenant you can charge another fee for getting another option, raise the rent and increase the selling price again to adjust for any inflation on property value.
Why give up more control than you have too? The less the time frame on the term, the more control you keep.
As far as how much for option consideration, get as much as you can! Don’t set the amount in any advertising or specify an amount when they call. ASK them, “what’s the most you could you come up with?” You never know what someone may have or be willing to put down for consideration. If they offer something low like $500 - $1000, then tell them the least amount you will need is $2500 or what ever works for you. Someone might offer $10k! He who mentions price first, loses!!!