Lease options offer would-be buyers a specified amount of time to qualify for a conventional mortgage before they purchase a property while enjoying all of the perks of homeownership.
The benefits of the rent-to-own arrangement far outweigh the risks for savvy sellers. So, read on as we explore using a lease option to sell your house in Mishawaka.
Option Fee and Rent Premiums
The option fee provides the exclusive right to buy the property to the tenants using a lease option to sell your house in Mishawaka. If your tenants choose not to exercise their option to purchase the home at the end of the agreement, you’ll still have profited from the option fee and rental premium you keep.
Savings
When using a lease option to sell your house in Mishawaka, you’ll save all the holding costs for your investment property while the property continues to appreciate and build wealth. And if the tenants leave, you’ll have had everything but your taxes and insurance covered during the lease term while the property increased in appreciation and built wealth.
Buyers
Rent-to-own buyers are typically looking for a property they can call home for the long term. They may need time to improve their credit score and save up for a down payment, or they may simply want to test drive the property before making a commitment. Whatever the reason, lease options are often appealing to buyers who are otherwise unable to purchase a home outright. As the owner of a rent-to-own property, you can open your home up to this growing market sector and realize significant returns. By offering a lease option, you give potential buyers the opportunity to lease your property with the option to purchase it at a later date. This can be an attractive option for those who are not ready to commit to a purchase but are interested in the long-term potential of the property.
Management
You should ensure the option and the lease remain as separate contracts. For sellers, there is very little management of the property itself involved when you’re using a lease option to sell your house in Mishawaka. However, your tenant screening system could make or break the deal. Working with seasoned real estate investors like the professional home buyers at NK Developments LLC and their property management team means you’ll have the best tenants.
Risk
You should be upfront with your lender about using a lease option to sell your house in Mishawaka to ensure there are no conflicts with your mortgage’s due–on–sale clause. In addition, acquire a home warranty that covers significant repair work or requires the tenants to pay for one to protect your investment. Typically in these agreements, the tenants are responsible for repairs up to a certain amount. Additionally, as a real estate investor with residential rentals, you must remain on top of the laws governing your properties and any changes in those laws, along with an intricate knowledge of the Mishawaka market, future city zoning, and economic planning to keep your portfolio as healthy as possible. Finally, it’s advisable to team up with an active local professional investor like the professional home buyers at NK Developments LLC, keeping you ahead of the game so you can adjust your investment strategies and keep your portfolio healthy.
Ready to sell your house in Mishawaka? NK Developments LLC is ready to buy, giving you your asking price via rent-to-own. Why wait? Our contract terms are simple, and we believe in total transparency; if you have questions about the process, we’ll answer in full detail with no obligation. At NK Developments LLC, we’re your neighbors here in Mishawaka; we’re proud of the work we do every day to help our neighbors and improve our community. At NK Developments LLC, our professional investors will make a deal you’ll feel good about long after you’ve left the closing table. Call NK Developments LLC at (574) 498-3434.