Lease options offer would-be buyers a specified amount of time to qualify for a conventional mortgage before they purchase a property while enjoying all of the perks of homeownership.
The benefits of the rent-to-own arrangement far outweigh the risks for savvy sellers. So, read on as we explore using a lease option to sell your house in Cleveland.
Option Fee and Rent Premiums
The option fee provides the exclusive right to buy the property to the tenants using a lease option to sell your house in Cleveland. If your tenants choose not to exercise their option to purchase the home at the end of the agreement, you’ll still have profited from the option fee and rental premium you keep.
Savings
When you utilize a lease option to sell your property in Cleveland, you’ll save on all the holding costs associated with your investment. This includes things like mortgage payments, insurance, repairs, and more. Additionally, if the tenants do leave during the lease term, you’ll still have gained wealth through appreciation and building equity. Ultimately, this strategy is a great way to save money while still making a profit on your investment.
Buyers
Buyers seeking rent-to-own properties may require time to get their credit ducks in a row and build up a downpayment. Or simply wish to test drive the property, intending to remain in their home for decades to come; often, buyers are willing to take the financial risk of the lease option after having experienced bad neighbors or other issues with another property. Whatever the reason, you’ll open your property up to a real estate market sector where properties are in high demand, and you can realize significant returns by using a lease option to sell your house in Cleveland.
Management
You should ensure the option and the lease remain as separate contracts. For sellers, there is very little management of the property itself involved when you’re using a lease option to sell your house in Cleveland. However, your tenant screening system could make or break the deal. Working with seasoned real estate investors like the professional home buyers at Flavortown Properties and their property management team means you’ll have the best tenants.
Risk
You should be upfront with your lender about using a lease option to sell your house in Cleveland to ensure there are no conflicts with your mortgage’s due–on–sale clause. In addition, acquire a home warranty that covers significant repair work or requires the tenants to pay for one to protect your investment. Typically in these agreements, the tenants are responsible for repairs up to a certain amount. Additionally, as a real estate investor with residential rentals, you must remain on top of the laws governing your properties and any changes in those laws, along with an intricate knowledge of the Cleveland market, future city zoning, and economic planning to keep your portfolio as healthy as possible. Finally, it’s advisable to team up with an active local professional investor like the professional home buyers at Flavortown Properties, keeping you ahead of the game so you can adjust your investment strategies and keep your portfolio healthy.
Ready to sell your house in Cleveland? Flavortown Properties is ready to buy, giving you your asking price via rent-to-own. Why wait? Our contract terms are simple, and we believe in total transparency; if you have questions about the process, we’ll answer in full detail with no obligation. At Flavortown Properties, we’re your neighbors here in Cleveland; we’re proud of the work we do every day to help our neighbors and improve our community. At Flavortown Properties, our professional investors will make a deal you’ll feel good about long after you’ve left the closing table. Call Flavortown Properties at (614) 964-9858.