Stop Renting Out Your Properties And Use A Lease Option!

"You Rent Out Your Properties To Make Money"

To make money you would need to minimize vacancies and costly repairs, and keeping them down is good income on an investment property. You can do that by using a Lease Option, where tenants typically have a 24 month lease and sometimes longer.

Benefits Of Having A Tenant Under A Lease Option.

This tells a potential tenant that by leasing your property they will have an opportunity to purchase it. The Option (purchase) price is typically market value and is decided upfront and put in the contract. The tenant puts down a non-refundable option consideration in place of a security deposit.  

Decreased Repair Expenses. They would have an agreement written into the contract that makes them responsible for maintenance and repairs.

Potential For A Nice Profit On A Sale. Typically the option price is market value or a little above, as long as it's not outrageously overpriced. Keep in mind that if you sell the house you would get full market value on top of the monthly cash flow you receive during the duration of the lease.

Higher Quality Tenants. They would be people who have the commitment of a homeowner and would treat it as their own. They move in and do everything as if they were the owner, maintenance and repairs are passed on to them. People tend to value things more when it's their own, and as a result take better care.

What You Need To Be Aware Of.

Some tenants do not exercise the option to buy at the end of their term. But as a landlord you will have less repair expenses and you will still own the property. You can give them the option to renew the lease with the same terms, or they can move. However, their deposit is non refundable and you can then get another qualified tenant under the same terms. You will continue to collect cash flow and you have had less headaches the entire time.