Posted by Jim FL on September 23, 2003 at 19:14:18:
Jon,
All good theory, and fodder for discussions.
Sure, you can charge a premium rent amount for a lease option.
Guess what?
Reality is this, what ever you get to collect as rent per month, steady, is market rent.
Meaning, if you have a house that you know will rent straight for $750/month, based on market rent rates, but offer it on a lease option, for $850/month, you might get that.
This then becomes market rent for that house.
Now, with the reality of things as I’ve seen them, you should start at the $850, but use the actual market rent of $750 in your buying equation.
You can always go down if need be, so don’t count on the $850.
You will also fill a house faster, if you can charge a little less than everyone else, and still offer the option along with the lease.
All if you buy right, of course.
My advice, don’t bank on “How much more” you can get per month with a lease option.
If you do, great, but it doesn’t always work that way.
Good luck,
Jim FL