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Hello, my name is Anthony, and I am a real estate investor.

If you are selling your property “For Sale by Owner,” you are probably like most sellers: you want to avoid paying a real estate agent's commission, and you probably feel you can get a better price by marketing and showing it yourself. In some cases, you might owe more on the property than it’s worth right now; which means you can’t really afford to pay a broker's commission anyway, and you need to get the best price possible to avoid paying extra money at closing. I understand.

But no matter why you’re selling, you should think about using a “lease-option.” There are many benefits to selling this way. With a well-structured lease-option agreement and a qualified tenant-buyer, you can:

• Get full market value for your property when it sells.
• Receive strong monthly lease payments during the lease term (which are typically years in length).
• Have tenants who take better care of the property because they plan to buy it.
• Transfer more maintenance and repair responsibilities to the tenants, which lowers your workload as a landlord.
• Keep the option to evict tenants if they break the lease (unlike seller financing, where eviction isn’t an option).
• Enjoy steady income with fewer vacancies and marketing costs during the lease term.
• Keep ownership tax benefits while the property is leased.
• Reduce risk, because if a tenant defaults, you can create a new lease option with another tenant-buyer rather quickly.

I work with tenant-buyers who want to lease-option properties. I can connect you with qualified, prescreened tenant-buyers and guide you in setting up your lease-option agreement with them. In fact, we require all tenant-buyers to consult with a mortgage broker before joining our list to ensure they’ll likely qualify to buy the property at the end of the lease period.

And the best part is that this doesn’t cost you anything because I’m paid by the tenant-buyer.

If you’re interested in learning more, let me know. We can talk by phone or video chat, and I’ll explain everything and answer your questions. If you decide a lease option isn’t right for you, that’s totally fine. There’s no pressure. I want you to sell your property in a way that works best for you and helps you achieve your goals. In fact, if I have any insights that might help you sell, I’ll be happy to share them.

I look forward to talking with you. Whatever you decide, I wish you the very best of all good things.

Sincerely,

Anthony Amos, MBA

Contact Us
(984) 367-0939

Frequently Asked Questions

1. What is a lease-option?
   A lease-option is an agreement where a tenant rents a property and has the option to buy it later at a set price. It usually includes two documents: a lease agreement and an option to purchase. The lease term is often longer, typically about three years, but this can vary based on the agreement.

 

2. How does a lease-option benefit me as a seller?
   A lease-option can help you get full market value for your property, provide steady monthly income, and reduce the stress of being a landlord. Tenant-buyers are motivated to take care of the property because they want to own it. You also keep your ownership tax benefits and can handle any issues more easily compared to regular renters.

 

3. What happens if the tenant doesn’t buy the property?
   If the tenant doesn’t exercise their option to buy, the property remains yours. You can lease it again, sell it traditionally, or enter into another lease-option agreement.

[Note: if you need another tenant-buyer in the future, we can help with this.]

 

4. How often do tenant-buyers actually buy the property?
   About one-third of tenant-buyers end up buying the property. Some can't get financing, while others change their minds. Either way, you benefit because you’ve received lease payments, enjoyed ownership benefits, and can still sell or lease the property.

 

5. How is the purchase price determined?
   The purchase price is agreed upon at the start of the lease-option and is typically based on the property’s current or future market value, based on comparable sales and credible market data.

[Note: We have credible market data to assist with evaluating present and future value as well as market rents in your area.]

 

6. Who is responsible for maintenance and repairs during the lease?
   This depends on the lease agreement. Often, tenants handle minor repairs, while landlords take care of major issues like structural problems or essential systems (e.g. making sure plumbing, heating, electrical, etc. are functioning properly) . Clear terms should be included in the agreement. [Note: You are free to use whatever lease agreement you prefer, but we do offer a lease agreement template for you to use that outlines expanded maintenance and repair responsibilities for tenant-buyers.]

 

7. What happens if the tenant damages the property?
   The lease agreement should require the tenant to repair and pay for any damage they cause. In the unlikely event that a tenant-buyer doesn’t do this, you can void the option and evict them from the property, and you have the same options for legal action as you would with any tenant: pursuing a judgment and reporting unpaid debts to credit agencies.

 

8. Will the tenant’s rent payments count toward the purchase price?
   This is negotiable. Some agreements allow part of the rent to be credited toward the purchase price (i.e. a “rent credit”), but many do not. It depends on what you and the tenant agree to. [Note: we can discuss pros and cons of offering rent credits in your lease-option agreement.]

 

9. How do buyers get financing when it’s time to purchase?
   Tenant-buyers typically apply for a loan from a conventional lender. Many use the lease period to improve their finances or credit so they can qualify for a mortgage when the lease ends.

 

10. Can I still sell the property if I find another buyer?
    No, not during the option period. Until the option period ends, the tenant-buyer has the first right to buy the property. You cannot sell to someone else unless the tenant gives up their option.

 

11. How long is the lease-option period?
    The lease-option period is flexible and depends on what you and the tenant agree to. [Note: We typically use a three-year lease term and a three-year option period.]

 

12. Do I get a security deposit?
    Usually not. Instead of a security deposit, tenant-buyers entering a lease-option arrangement typically pay an "option fee," which is a non-refundable amount that gives them the right to buy the property. This is how I am paid. I collect this fee in the course of assigning the option to a tenant-buyer that you approve. You would receive the first month’s rent prior to the tenant-buyer moving in as well as any special deposits (e.g. pet deposit) that might be warranted depending on the tenant-buyer’s circumstances. Since you are often getting a premium monthly lease payment, the general security deposit is not customary or necessary.

 

13. If I lease my property, will my property taxes go up?
    Maybe. If the property was your primary residence and you are currently eligible for a basic, elderly or disabled homestead exemption, leasing it would cause it to be reclassified as a rental property, which would increase your property taxes. However, the rental income and tax benefits of ownership often make leasing financially worthwhile.

 

14. What are the risks of a lease-option?
    Risks include the tenant not buying, the property losing value, or the tenant damaging the property. These risks can be reduced by properly screening tenants, having clear agreements, and monitoring market trends using credible information.

 

15. What happens if I default on my mortgage during the lease-option period?
    If you fail to pay your mortgage, the property could go into foreclosure, which would create problems for the tenant-buyers. It’s essential to ensure you can make your mortgage payments during the lease term so you do not jeopardize the status of your property or your ability to sell to your tenant-buyers when/if they opt to buy the property.

 

16. Since my home has a mortgage, is there a risk the lender will accelerate the loan?
    No, the lease-option does not affect your mortgage unless the property is sold. The lender only becomes involved if the tenant-buyer exercises the option and the property transfers ownership.

 

17. How do I protect myself legally in a lease-option agreement?
    The best protection is having a clear, detailed agreement in place that covers payments, responsibilities, and what happens if someone breaches the contract. It’s best to use a proven template or consult a professional to make sure you’re protected. [Note: We provide a residential lease agreement and an option agreement template to you for your convenience that includes many strong provisions, but we make no representations, warranties, or guarantees of any kind regarding their accuracy, compliance, completeness, or suitability for your intended use, and you are advised to consult with a qualified attorney before using them.]

 

18. Is a lease-option different from a lease-purchase?
    Yes. A lease-option gives the tenant the right, but not the obligation, to buy the property. A lease-purchase requires the tenant to buy it by the end of the lease term. We do not typically work with lease-purchase arrangements.

I hope these answers give you a better idea of how a lease-option arrangement works and helps you decide if it is right for you or not. In many situations, lease-options provide a great win-win agreement for all parties involved. Please reach out if you'd like to learn more.