Landlords: What are Your Features and Benefits with Rent-to-Own Contracts?

 What are the Lease 2 Purchase Features & Benefits?  There are several to consider! First there is the answer to this question that pertains to the Landlord &/or seller. Then there is the piece of the answer that pertains to the tenant/buyer. On a side note, the are also features and benefits that relate to the realtors and investors who get into this joint venture with properties.  Let’s tackle the general or broad list of features and benefits first. 

For starters,  According to a very reliable source “Without a doubt, the Lease 2 Purchase contract is the quickest, easiest and least expensive way to buy, sell and invest in real estate. It replaces the typical adversarial relationship that usually exists between buyers and sellers with a win-win method of transferring real estate ownership. As a result, it is highly prized by those who know about its powerful features and benefits. Specifically (if you’re the buyer), you will have minimum cash out of pocket, credit problems are okay, faster equity growth, increased buying power, time to kick the tires and peace of mind. Specifically (if you’re the seller), you will have a top sales price — even if demand is low, positive cash flow, the largest market of buyers, minimum risk, no commissions or fees, no maintenance, no landlording and (my favorite) a non-refundable option deposit.”


 Landlord Benefits:

“If you don’t need much cash up front ($5,000 – $20,000), the best way to get your full asking price and a higher than average monthly rent for your home is to offer it for sale on a Lease 2 Purchase. Since you’re offering a huge value and attractive financing to assist the tenant/buyer, they tend to be willing to pay a higher sales price and higher than average rent. Tenant/buyers can easily understand the concept of trading price for time and value. When you Lease 2 Purchase your home, you receive a non-refundable option deposit. This amount can be as much (or as little) as you wish. You will receive a majority of your profits at closing when, and if, the tenant/buyer exercises their option to buy. You also win if the tenant/buyer defaults or allows the option to expire since the option deposit is non-refundable. You can begin the whole process over again by collecting another option deposit from a different tenant/buyer. The earnings potential for the landlord/seller is tremendous since a well-negotiated deal will reap profits at every stage of the game.”

Here is an extensive bullet list of other benefits:

  • Top sales price, even if demand is low

  • No vacancies

  • Peace of mind

  • No maintenance, no landlording headaches

  • Tax shelter is held intact

  • Higher than usual rent

  • Positive cash flow

  • Non-refundable option money

  • Largest market of buyers