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above book AND 6 full months of virtual, *online* coaching with 26 weekly manuals and audios, by going to my coaching site. RENT VS. LEASE OPTION
There are advantages and disadvantages to renting properties you own or doing lease options.
The typical person who purchases a home using a lease option, does so because they cannot figure out a way to purchase any other way. This means that they probably have credit issues, time on job issues, income issues or no down payment.
A typical renter, on other hand, can be found with good credit and a stable job.
The quality of tenant that you get is only real advantage that I see with renters. Lease Options have some other real benefits.
First of all, you can get more monthly rent for a home than when you sell with a Lease Option. (typically 10% more than market). This 10% is what you would apply to Seller's down payment if they do buy, so you haven't lost anything by giving them excellent terms.
Instead of getting a refundable deposit (like you would get from a renter), you get non-refundable option money. I suggest charging about same as you would charge for deposit... typically, 1 month's rent. Check out what is customary in your area. Some areas are getting as much as 5% down on a lease option! Since it is likely that tenant will never exercise their option, being able to keep option fee will cover most of costs of getting property re-rented or leased after current tenant moves out.
You can also sell home for more than market value... typically 5%-10% more. If they do buy, it will be a good deal for you. If they don't buy, you just go out and find another tenant.
