Posted by Todd-Ohio on April 11, 2006 at 17:30:13:
I would not “remove” the guy off the lease. It can’t hurt you to keep him on, but it might hurt you if you take him off.
You would probably rather have 2 people responsible to pay you, rather than 1 right?
That doesn’t mean he’s not free to move. The important thing is that they both understand that THEY agreed to pay you rent each month. You could care less whether it comes from one of them, or both of them, as long as you get the full amount. Obviously if he moves out, then you would (at best) be getting paid the full rent amount from her.
If she can qualify on her own to buy, then of course you can simply follow through with her to purchase.
If she cannot qualify to buy on her own, then you have a glorified tenant who is responsible for her own repairs… which is what a lot of lease-option folks are anyway.
I was wondering if you may have a suggestion for this? I have a home that I leased optioned out to my tenants. Well the couple is splitting up. He is going his way (he wants out of the lease) and she wants to stay in the house (she says she still wants to buy the home). Should I sign a new lease option with her and release him from the lease. I’m just concerned about the option money they gave me. They put down $2,500 NON REFUNDABLE option money. I guess with him walking away form the house he forfeits his share, is that right?
It’s non-refundable- what’s the concern here? If she wants to stay, they can work out whether or not she pays him his half.
Would you have approved her on just her income? If not, then don’t let him off the lease. Let them figure it out in their divorce negotiations.
Having said that, I have let the departing spouse off on a mobile home note, but they had been excellent payors for over 2 years and their split was amicable, i.e. they were not trying to make the MH a point of contention.