lease to purchase arrangement - Landlord Forum thread 322037

lease to purchase arrangement by J (CT) on July 29, 2014 @19:19

A candidate tenant asks "lease to purchase arrangement". What should I be aware of "lease to purchase arrangement"? I do want to sell my property next year.

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Re: lease to purchase arrangement by Bill on July 29, 2014 @20:08	[ Reply ]

Most tenants have the illusion that they can buy a house by paying rent. They have no concept of the taxes, insurance and maintenance that will also be required. If your tenant has good credit, a stable job and 10% down he can get a bank loan. If the bank will not loan him the money he is not good enough for you either.

Re: lease to purchase arrangement by J (CT) on July 29, 2014 @20:17	[ Reply ]

Bill, Thank you very much!!! I got the idea. I certainly would still use LPA Tenant Screening check list for screening. Then, collect extra fund as part of down-payment if the tenant wants to do "lease to purchase arrangement". This is the first time for me to think about this. Well, my realtor simly asks the possibility, and does not find a qualified tenant to really talk about "lease to purchase arrangement".

Re: lease to purchase arrangement

Re: lease to purchase arrangement by Anonymous on July 29, 2014 @22:30	[ Reply ]

I recently had a prospective tenant write to me about doing a rent to own option. My advertising clearly does not allude to anything like rent to own. Unlike the OP I do not want to sell my house. Basically, what these people are trying to do is to get you to give them financing for the purchase of your house. They are not creditworthy of buying coffee at a restaurant. I told the guy NO, I AM NOT A MORTGAGE COMPANY. Try Chase bank.

Re: lease to purchase arrangement

Re: lease to purchase arrangement by Eric on July 30, 2014 @01:01	[ Reply ]

The best advice I can offer is IF this tenant is really qualified to rent (because that's what it is really about at this point) is to go ahead and set up a Lease with Purchase option, but require a nonrefundable deposit in addition to the security deposit if they are really serious buyers and also require that they show you a mortgage pre-qualification with x # of months. Otherwise do a regular LPA Lease with a first right of refusal addendum and decide on a price if and when the renter is ready to really buy.

Re: lease to purchase arrangement