Rent to Own Benefits to Sellers and Landlords

Benefits of Lease Options

After reviewing all of the great benefits to tenant/buyers, you are probably if there are any benefits to homeowners or landlords that want to sell their properties. 

If housing sales are slow in your area you've probably noticed your neighbors or competitors dropping their sales price drastically just to make a sale, correct?  Competition to sell a house can be tough.

If you are a landlord or investor are you feed up property management? How are your tenants? Are they the type that seem to wreck your property and don't take good care of your property at all? Are your tenants always paying their rent late? Are they even paying?

Does it seem like you're always dealing with bad tenants? How about being called constantly by your tenants at night to fix leaking toilets and sinks? .

Also, how is the cash flow on your property?  If it's negative are you taking money out of your pocket to cover mortgage payments or all maintenance and repair costs?

Whatever your predicament is, Lease Purchase (rent to own) may possibly be the solution.

If you are facing financial hardship, be advised that timing is vital in certain situations.  For example, if you think you might default on your mortgage or you're 30 days late on your mortgage and you know for sure that the situation might worsen due to your current financial status, you probably shouldn't wait until you're deep into the foreclosure process before you decide to use lease purchase to save your property, credit, equity, etc.

If you're facing a situation like default, or foreclosure, why not lease purchase out your property in the very early stages to save you from loosing your property down the road. If you wait too long, you might be out of luck.

One of the good news is, if/when the tenant/buyer buy your property through lease purchase, you can use your profit to buy a new property/properties if you want.

If they don't buy your property, you can always start the lease purchase process over with another tenant/buyer or possibly with the same tenant/buyer, or you can move back into your property. The choice is yours.

If you are a landlord and do not want to use lease purchase for your property because the tenant might end up buying your property, so you'll rather just do a regular rent and try to pay off the property to keep it for a long term positive cash flow investment, you have a good goal, but I am here to tell you that you can achieve this goal of having long term positive cash flow investment properties faster, safer, with more profits, and peace of mind by going the lease purchase route.

How you ask? Before we get into that, let me make a quick point and I hope everyone (including tenant/buyers, Seller/Landlords, Investors, and Realtors®) is reading this:

Though tenant/buyers are way better than regular renters, because they're sick and tired of renting and are serious about owning their own home, and willing to take great care of your property and be responsible for all the minor maintenance if the seller/landlord is flexible with the terms, statistically, most of the tenant/buyers who enter into lease purchase do not exercise their option to buy the property later on as their suppose to.

Why? Mainly because of the same reason(s) that prevented them from owning a home/property in the first place, but even if they do not exercise the option to buy the property you still come out a winner.

So the question to all the tenant/buyers reading this is, if someone (being a seller/landlord, or an investor) is willing to give you such a great opportunity as lease purchase (rent to own) so you can finally have the chance to own your own home, why would you not take advantage of such an opportunity?

Sometimes tenant/buyers' financial situations don't improve as much as they hoped, other times they change their minds due to job relocation, additional children to the family, divorce or separation, etc.

Whatever the situation may be, if they break the lease or fail to exercise their option to buy, they don't get any rent credits, option consideration (down payment/option money), or any improvements they have made to the property.

So whatever their situation is that prevented them from exercising the option to buy the property, it is up to you the seller/landlord to help them out if they've been a great tenant(s). The choice is yours.

On the other hand, procrastination is usually the problem for many people. So instead of working on their problem(s) which prevented them from owning in the first place, while they are in a lease purchase, they don't.

If tenant/buyers do not buy your property you still win due to the fact that you solved the problem(s) or situation(s) you were probably facing and you possibly received a bigger positive cash flow from the monthly rents, plus the non-refundable option consideration.

In addition, you can do it all over again with a new tenant/buyer or even the same tenant/buyer (if they have been a great tenant and paid on time and would like a second chance to work on their situation so that they can hopefully buy this time).

Hopefully someone buys this time, but if they don't, once again there are many advantages (which we'll go through in the next several passages) for you to do it again and again until someone ends up buying it.

As long as you are not taking advantage of people (tenant/buyers), but providing a great opportunity to create a win win situation in the transaction for both the tenant/buyer and yourself, it is up to the tenant/buyers to take advantage of such great opportunity.

With the non-refundable option consideration, and a possible higher than market rent, and a top sales price for your property, can you see how you can do lease purchase several times with possibly one or more properties and end up having enough money to pay off one or more of your properties sooner than just renting your property?

Here are the seller/landlord advantages of lease options for homes using a Rent to Own -  Lease To Purchase Approach.

We can assist you with all of your rent to own needs, including buying or selling.