'Lease Option' The Most Effective Way to Pull Tenants

By: Jeffery HollyHand
Submitted: 2008-11-10 14:01:20
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Finding the ideal occupant can be a difficult job for a landowner but most property-owners 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 contract in which the lessee is given with the option to buy 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 concludes the occupant has the option to buy the property. While many landlords have undue misapprehensions regarding ‘Lease Option’ but in fact this agreement has numerous benefits for both the parties of the agreement
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.

Many investors and landlords, in spite of the fact that they own expensive property and estate in the finest locality often look bewildered while finding the right tenant. The property-owners hope for a dependable occupant who not only pays good rent on time but also take care of the health of the property. But what they end up with is usually the exact opposite. All they manage to find is a tenant, who is unwilling to pay high rent, ignores the maintenance of the property and is often late on payments. This problem has forced many property owners to sell their property on comparatively low prices and earn their bread and butter through alternate source.

Several landowners also suffer significant losses due to certain tricky situations occurring after the contract has been signed. Either landowner are not totally aware of all the terms of agreement or they do not follow the law while creating contracts. And subsequently, the slow process of legal action can turn into a severe pain in the neck of the uninformed property-owners. Property experts and law practitioners identify this difficulty by recommending the landlords to sign suitable lease contract with their lessees. There are primarily two parties in a lease agreement, lesser and lessee. Lesser is the property-owner who offers the property to the tenant while lessee is the tenant who attains the property to use. After cautiously preparing the lease agreement both the parties to the agreement know beforehand of all the clauses and any vagueness is eliminated.

Lease Option helps property-owners draw more willing tenants, as the tenant realizes that he will eventually buy the property, consequently, he grabs the chance with both hands and does not test the tolerance of the landlord. Not only the tenants agree to pay higher rent but they also pay the rent promptly as it serves as an installment as well.

In a lease option contract tenants do not neglect the maintenance of the property and are more than willing to carry out the repair work themselves. As they aim to ultimately buy the property themselves, as a result, disregard on their part will be evocative to causing damage to their own house.

One more advantage of this sort of contract is that there are a lot of people who do not have the ability to pay huge amount all at once in order to purchase their own house, as a result, such occupants can make their dream of having their own house come true. On the other hand landowners also manage to get good prices for their property as the tenants willingly agree to pay more as long as it is in installments.

Selecting ‘lease option’ in order to lease property brings in many advantages to both the tenant and the property-owner. It gives the golden chance to those occupant who are unable to afford their personal residence, to purchase their house in installments. While the landowner 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 most suitable option for both the tenant and the property-owner.

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.

Article source: Expert Articles

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