Lease options - Posted by Rob-IN

Real Estate Investing Real Estate Gurus
#1

Posted by Chandra on January 25, 2002 at 12:39:27:

Hello Rob,

I am a no expert in L/O, but I do have fellow
investor friends who are and as far as I know,
what they usually do is:

Yes you do the repair. However, give them a
set of limit as to how much you are willing to
do the maintenance. For example, tell them that
you are willing to do the maintenance only up
to, say $50 dollar. Also, make sure you walk them
through and give them time to inspect the house
and make sure that everything is functioning and
doesn’t need any repair. Have their acknowledgement
in writing and sign so that you don’t have to waste time arguing over who is responsible for what.

I hope this helps a little…

#2

Lease options - Posted by Rob-IN

Posted by Rob-IN on January 25, 2002 at 07:30:20:

Excuse my ignorance, but I am new to L/O.

I am considering L/O a property I own rather than renting it. I have read a lot of postings on this subject in the archieve, but had another question:
With a lease option, who is responsible for the maintenance costs and repairs?
I assume it would be me until the leasee excerise the option to buy, but I want to make sure.

Thanks,
Rob

#3

Re: Lease options - Posted by Rob-IN

Posted by Rob-IN on February 07, 2002 at 21:09:51:

Thanks to everyone below for the help and responses.

Rob

#4

Re: Lease options - Posted by Scott

Posted by Scott on February 07, 2002 at 17:21:57:

Hi Rob I am a Real Estate Investor interested in purchasing more property I already own 3 Buildings would be interested in finding out more info on your property for L/O.

#5

Re: Lease options - Posted by JohnBoy

Posted by JohnBoy on January 26, 2002 at 19:35:37:

Typically the tenant/buyer is responsible for all repairs and maintenance. However, should something major occur then they may not have the money to cover the costs of repair which means you would have to step in to cover it to protect your interest. Then you can set up a payment plan over the balance of the lease to pay you back.

But as with anything, it’s all negotiable.

PS

Whatever you do, NEVER call it a down payment. It’s “option consideration”. They are not buying anything, they are only leasing with an option to buy. They don’t buy unless they exercise the option. Option consideration is non-refundable. It’s the price they pay for buying the option on the property.

#6

Re: Lease options - Posted by Paul S

Posted by Paul S on January 26, 2002 at 09:38:45:

How much of a down payment are you going to ask for? You could allow a buyer to ‘finance’ a portion of the down payment by doing maintenance themselves in lieu of a portion of the down payment. Just say that if they assume responsibility for minor maintenance items (e.g. not the roof, HVAC, etc.) then you will count it as $X . Just a suggestion. I bought a lease-option and I was offered this and I took it. Had I not bought the property- it would have been a great deal for the seller. I did buy it- and it was still a great deal for the seller because they didn’t have to fuss w/ maintenance for two full years.

#7

Re: Lease options - Posted by John (Las Vegas)

Posted by John (Las Vegas) on January 25, 2002 at 23:45:09:

If your contract say nothing about maintance or repairs then landlord (seller) is responsible.

Best,

Definitively do title research!

Best,

John

(702) 296-0212
john@millionsaver.com

Las Vegas investor deals, fixer-uppers, OWC, lease/option…
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#8

Re: Lease options - Posted by Noel

Posted by Noel on January 25, 2002 at 22:56:45:

It is also common to have them pay the maintenence costs, as part of their “Pride of ownership”. This is easily justified because they are “buying” the home.