Re: Lease options - Posted by Zane
Posted by Zane on November 27, 2000 at 23:44:47:
I admit to being a newbie Carol but I would say it can’t hurt! Here is something that might help u:
A Small Sample of Landlord/Seller Benefits:
· Top Sales Price, Even if Demand is Low for Your Home: You attract to your home more tenant/buyers who are willing to pay a premium because of the terms and value you are offering.
· Higher than Usual Rent: Since you are flexible on your terms and are offering value, you can demand a higher than usual rent.
· Positive Cash Flow: Since you can demand a higher than usual rent, this will increase your cash flow.
· Nonrefundable Option Consideration Up Front/Minimum Risk: When a tenant/buyer executes (signs) a lease purchase contract, you receive an option deposit that is yours to keep if they default on the deal or decide not to buy.
· No Realtor Commissions: Since you are selling your home yourself, you will avoid paying a 6% - 10% Realtor commission. In the case of For-Sale-By-Owners, you save on advertising costs because you will have your home lease purchased more quickly.
· Attraction of the Highest Quality Tenants: You are dealing with tenant/buyers who have a vested interest in the home, therefore, they think of themselves as homeowners and tend to take better care of it.
· Tax Shelter is Maintained: You remain on the deed until the option is exercised and, consequently, you maintain all of the tax benefits of ownership.
· No Maintenance, No Landlording: Tenants who have a vested interest and believe they are a homeowner may feel a “pride of ownership” that encourages them to pay on time, perform maintenance, and make improvements to your home. Additionally, you can delegate maintenance to the tenant in your lease purchase agreement.
· Larger Market of Buyers: You are marketing your home not only to buyers, but also to renters and investors. These three groups make up 85% of those seeking to acquire real estate.
· No Long Vacancies: Your phone will ring off the hook when you advertise your home is a lease purchase deal. Typical turnover time is days or weeks rather than months or years.
· Peace of Mind: It is safer than conventional rentals because of the quality of the tenant/buyers and their vested interest in your home. It also means that someone is living on-site who will watch and guard your home against vandalism, fire, etc.