Finding a good tenant buyer is an important thing when you do a lease option.

When searching for a tenant buyer you will want to consider a few things, but first you might want to send a note like this - this came from one of my students.

Assume you send this after you have someone responding to your Craigslist ad for a rent to own home. In the future we will cover a skip for what to say to tenant buyers when they call on the phone.

Dear _______,
I wanted to touch base with you about your interest in our rent to own home, and welcome your input regarding the type of property you are looking for. Please let me know what you will need in terms of the following:

* location - town & neighborhood, proximity to public transportation of any particular sort; other?
* square footage
* number of bedrooms & baths
* accessibility factors -- e.g., stairs? elevator?
* age of home
* other requirements and preferences (e.g., basement, fenced-in yard?)
* maximum rent rate per month that you are able and willing to pay
* maximum deposit for option to buy that you could put down up front to do the rent to own (note this will go towards purchase price when you buy the property)
* household income, so we can better determine how much house you can afford

There will be a $20 tenant application fee per person over 18. We look forward to working with you in the near future. Feel free to contact me at 123-456-7890 for any questions you might have about this rent to own home or any others we have.

Wendy
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Free free to use any of this you would like. Feedback? Additions? Comments?

Rent-to-Own, Your Lifesaver in a Drowning Market

Here are some reasons rent-to-own can be beneficial for you:

• Higher Purchase Price – Rent-to-own sales typically command a price premium over traditional saes.  The buyer is paying extra for the flexibility he recieves by not having to do an outright purchase immediately
• Higher Rent – You may be able to charge more for monthly rent in a rent-to-own than you would for just a straight rental.
• Cash Flow – If your monthly payments are less than the monthly rent, the difference goes into your pocket.
• Option Fee – This upfront fee paid to you by your buyer is what secures the purchase price down the road.  If the buyer closes on the home, it would be applied towards the purchase price.  If the buyer elects to not purchase the home, the option fee is forfeited and still remains yours.  Eitehr way you win.  If you were to just rent the home, then the tenant would put down a security deposit.  The option fee is different than a security deposit.  A security deposit is owned by the tenant and can’t be used by the owner, except for repairing damages, unpaid rent and other provisions as mandated under state laws.

Rent-to-Own

Excerpt from Rent-To-Sell: Your Hands on Guide to SELL Your Home When Buyers are Scarce.