Real estate investors across the nation are turning to lease options in order to sell homes. It can generate more money in the long term and will give you the power and flexibility to focus on other investments in the meantime. In our newest post, we describe why real estate investors ought to consider lease options in San Antonio.
As a real estate investor, you may have a home you want to sell but haven’t had the ability to unload at the price you want. It takes place all the time, however, you don’t need to take a loss. By utilizing a lease option, you’ll be able to get the price you want, bring in additional income, without any risk. Keep reading to learn more about how lease options can benefit you!
Sell For The Price You Want
When you list a house in San Antonio, there are no guarantees that you will get the price you’re asking for. You might find your property sits on the MLS stagnantly, requiring you to drop the price. By using a rent to own, or lease agreement with a potential buyer, you will have the ability to get the price you want. You will set your sale price in the beginning, letting the tenant know what they must expect. While they may attempt to negotiate the cost, they don’t have much bargaining power, so what you ask for, you will likely get. The only thing to be aware of is any significant market changes while the agreement is in place. Even if prices increase dramatically, you will still need to sell them the house at the originally agreed upon price. On the other side, if the marketplace drops, you will still have the ability to get today’s price for it.
Generate More Income
Each month the tenant will pay you a higher than average cost to rent the house. In some agreements, a portion of this amount will go towards the down payment. In other cases, it doesn’t. This all depends upon the terms of your agreement. In either case, you will be creating more monthly earnings from the home than if you were to merely rent it out. You will likewise ensure yourself a tenant over the lease term. They will have a genuine interest in the property, not wanting to break the lease for any reason.
With this greater interest in the property, you will discover that your tenants will take very good care of the house. They will treat it as if it were their own, performing the repairs and making sure all maintenance is being taken care of. Some tenants will even want to complete upgrades or special projects to the home while living there. Naturally, this is subject to your approval, but it won’t hurt having them add value to the property in case of a default. You can rest assured that they will not cause any damage to the house or permit it to become damaged, dirty or run-down. They will take much more pride in the house than just your average tenant.
The tenant is going to do whatever possible to ensure payments are received on time. If they default on their payments, the deal is off and you end up keeping the extra amount they paid in rent every month. If this does take place, you can then decide to relist the property, with an entire new pool of potential buyers. If it still isn’t the right time, you can find another prospect for a rent to own arrangement. In either case, you will still come out ahead.