‘lease Option’ Is The Best Option For Both Tenants And Landlords!

Many investors and landlords, despite the fact that they own valuable property and estate in the best locations often look perplexed while finding the right tenant. The landlords wish for a responsible tenant who not only pays good rent on time but also looks after the health of the property. But what they get is the exact opposite. All they manage to find is a tenant, who is reluctant to pay high rent, overlooks the maintenance of the property and is often late on payments. This problem has forced many landlords and property owners to sell their estate on relatively low prices and earn their bread and butter through alternate source.

Many property owners also suffer substantial losses due to certain complications arising after the agreement has been signed. Either landlords are not fully aware of all the terms of agreement or they do not follow the law while creating contracts. And afterwards, the gradual process of litigation can become a severe pain in the neck of the ignorant landlords. Property experts and law practitioners diagnose this problem by advising the landlords to sign proper lease agreements with their tenants. There are mainly two parties in a lease agreement, lesser and lessee. Lesser is the landlord who provides the property to the tenant while lessee is the tenant who acquires the property to use. After carefully preparing the lease contract both the parties to the agreement know beforehand of all the clauses and any ambiguity is obliterated.

Normally a written lease agreement is used by parties and recommended by lawyers but an oral lease agreement is also valid. But experts discourage the use of oral lease agreements as they are highly difficult to prove in the court of law and often one of the parties suffers loss. Commercial lease agreements are signed when the landlord is leasing his property to be used for commercial purposes such as offices, shops etc, while normal lease contracts are used in case of residential property.

Finding the ideal tenant for a landlord can be a perplexing job but most landlords are unaware of the fact that the biggest tool to attract tenants has always remained at their disposal. 'Lease Option', a term used for a lease agreement in which the tenant is provided with the option to purchase the property is an effective way to pull tenants towards your estate. In a ‘Lease Option’ agreement the tenant has to pay the stated rent to the landlord but after the term of the contract expires the tenant has the option to buy the property. Although, many landlords have undue misconceptions regarding ‘Lease Option’ but in fact this agreement has countless benefits for both the parties to the agreement.

Lease Option helps landlords attract more willing tenants, as the tenant realizes that he will eventually buy the property, therefore, he grabs the chance with both hands and does not test the patience of the landlord. Not only the tenants agree to pay higher rent but they also pay the rent voluntarily as it acts as an installment as well.

In a lease option agreement tenants do not overlook the maintenance of the property and are more than willing to undertake the repair work themselves. As they intend to eventually purchase the property themselves, therefore, neglect on their part will be reminiscent to causing damage to their own house.

Another benefit of this kind of agreement is that there exist many people who do not have the capability to pay large lump sum amount in order to buy their own residence, therefore, such tenants can make their dream come true of owning their own house. On the other hand landlords also manage to get good prices for their property as the tenants willingly agree to pay more as long as it is in installments.

Choosing ‘lease option’ in order to lease property reaps many benefits to both the tenant and the landlord. It gives the golden opportunity to those tenants who cannot afford their personal residence to purchase their house in installments. While the landlord does not have to take pains to find good tenants and also finds the right price against his holding. With both the parties in a win-win situation, choosing this type of contract is definitely the best option for both the tenant and the landlord.

By: Jeffrey Hollyhand

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Jeffrey Holyhand is an expert of lease purchase agreement and the founder of LeasePurchaseMadeEasy.com. Visit his website to learn more about lease purchase contract.