Monday, March 2, 2009

Stop Being a Landlord for Your Rentals

Who wants to be a landlord? Not many people enjoy those later night calls from their tenants letting them know that the roof is leaking right on their head. Especially on a Saturday night at 11:30pm when you can't get anyone to the property before Monday and the tenant wants to know what you are going to do about it.

Well I have a solution for you that does not require you to sell your house right away, a Lease Purchase Option otherwise known as Rent-To-Own. In my last blog post I described what a Lease Purchase Option was and how we use to sell houses but you can also use it to get tenants in your properties, paying a higher rent and avoid the late night calls. Will you have to sell the house? Yes if the tenant exercises their option but you will be getting a high rental rate and peace of mind. You also help someone attain home ownership.

How does a Lease Purchase Option help me get out of being a Landlord. When we lease one of our properties we impress on the tenant that they will be owners of this property and they need to start taking care of it. This is their home and the maintenance issues are things they would have to do if they owned the home. We have not had a tenant argue with us on this issue. So we collect an Option Deposit (non-refundable) that we use as the down payment for the purchase of the property if they exercise their option and a higher rent (we will credit a portion of the rent towards the deposit). The purchase price of the property is locked in with the agreement so your know what you will be getting for the property. The property will remains yours if the tenant decides not to exercise their option. Does that happen, yes more often than you would think.

So next time you need to rent your property, especially after you just evicted the last tenant, think about a Lease Purchase Option. You will find that the tenant is more committed to the property, will require less of your time and the tenant will be happier.

See Ya,
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