Lease option is a simple lease agreement made between the tenants and the sellers for a certain property. Under this the tenants are offered an option to buy the property within a specified duration. This duration is of about one to two years period only.
Clients see this agreement as an ideal finance technique through which they can actually buy the house of their dreams. Lease options provide a lot of time to the tenants to gather the total finances required to buy the property eventually.
Sellers get a number of advantages by putting their properties on lease purchase agreement. This way they get increased monthly cash flows, a confirmed permanent source of income for years to come and receive upfront option money as well.
Lease purchase option contract is a great marketing tool. It may seem complex from the surface but is quite beneficial for both the parties.
Know more about lease options and lease purchase agreement
There are few tips given below to help readers know more about Lease Option.
1. Under Lease Option you just have to pay a very small amount of total price set for property as down payment. It is paid to start and make the agreement work. Down payment amount can vary from seller to seller, but most of the sellers try to keep it higher just for the sake of security.
2. Under Lease Option a forced savings account is to be made by the customers. It helps them to generate rent credit on monthly basis.
3. By undertaking a Lease Option agreement you can actually get to live in the house you plan to buy someday. It's not necessary that all of us are financially sound enough to pay off the complete price of the property bought in one go. Thus the trend of installments came into being smoothen up things.
4. Under Lease Option agreement you will have to pay an option fee along with the rent credits in the beginning. Total amount payable comes up to around more than one hundred and ten percent of the rental fee.
The seller of the property would be getting some extra rent for the same property this way. The seller will also get a surety of more keen maintenance from the tenants' side then. This is because tenants will get emotionally attached to that property during their course of stay in the house.
For buyers, Lease Option agreement actually defines their interest in a more precise way and allows them to take up high price properties on rent whenever they want to.
Clients see this agreement as an ideal finance technique through which they can actually buy the house of their dreams. Lease options provide a lot of time to the tenants to gather the total finances required to buy the property eventually.
Sellers get a number of advantages by putting their properties on lease purchase agreement. This way they get increased monthly cash flows, a confirmed permanent source of income for years to come and receive upfront option money as well.
Lease purchase option contract is a great marketing tool. It may seem complex from the surface but is quite beneficial for both the parties.
Know more about lease options and lease purchase agreement
There are few tips given below to help readers know more about Lease Option.
1. Under Lease Option you just have to pay a very small amount of total price set for property as down payment. It is paid to start and make the agreement work. Down payment amount can vary from seller to seller, but most of the sellers try to keep it higher just for the sake of security.
2. Under Lease Option a forced savings account is to be made by the customers. It helps them to generate rent credit on monthly basis.
3. By undertaking a Lease Option agreement you can actually get to live in the house you plan to buy someday. It's not necessary that all of us are financially sound enough to pay off the complete price of the property bought in one go. Thus the trend of installments came into being smoothen up things.
4. Under Lease Option agreement you will have to pay an option fee along with the rent credits in the beginning. Total amount payable comes up to around more than one hundred and ten percent of the rental fee.
The seller of the property would be getting some extra rent for the same property this way. The seller will also get a surety of more keen maintenance from the tenants' side then. This is because tenants will get emotionally attached to that property during their course of stay in the house.
For buyers, Lease Option agreement actually defines their interest in a more precise way and allows them to take up high price properties on rent whenever they want to.
