Lease Purchase Advantages For Sellers
Lease Purchase Advantages for S E L L E R S
1. Usually top sales price for your property ( no haggling).
2. Large market of available buyers at all times.
3. Better quality tenants because these are really tenant/buyers. (They want to take good care of your property simply because at some time in the future, it’s going to become their property.)
4. Higher rent than usual for the market area.
5. Non-refundable option consideration (down payment) which is yours to keep.
6. All minor maintenance is delegated to the tenant/buyer. (Direct ownership leaves you with all of the management/maintenance “headaches.” Lease purchasing with an option to buy eliminates 2:00 A.M. phone calls and late rent payments.)
7. Seller remains on the deed - it’s still your property until the option is exercised.
8. Seller retains the tax shelter.
9. Seller continues to enjoy all of the tax advantages. (Check with your tax advisor on that.)
10. No lengthy vacancies (unprotected properties). Puts a new occupant (tenant/buyer) into the property in days or weeks, rather than having to wait 45 - 60 - 90 days which is typical with conventional financing.
11. Lease purchasing (rent-to-own) puts pre-qualified, reliable tenant/buyers in now-vacant properties.
12. That means someone is living on-site to watch your property (guard against vandalism, fire danger, etc.) That’s like having a security guard living in your house who pays you - rather than you having to pay them!
13. Stops the money hemorrhage of mortgage payments in the case of vacant properties or where a “tenant” may not be paying (it happens).
14. As a result, this produces a great cash flow!
15. Saves the seller a lot of money (especially For-Sale-By-Owner) by not having to advertise the property until it finally sells.
16. No fees to pay (especially application fees, 6 to 10% Realtor commissions, closing costs, etc.)
17. As with No. 6 above, you never have to worry about collecting rents, fixing leaky faucets, changing evaporation cooler pads up on a hot roof, making sure the lawn is mowed, et cetera.
18. Safer than conventional rentals because of the quality of the tenant/buyers.
19. A competent accountant or tax attorney can file legitimate write-offs, deductions, exchanges and other mechanisms provided by law.