Lease with Option

Lease with Option

In the past the chances of a lease with option actually closing was less than 3%. Many unscrupulous landlords were taking advantage of tenants by making the option all but impossible to exercise.

I will warn tenants to avoid the following tricks:

• The agreed price assumes a 10% appreciation on current market price.
• The option fee goes only to the down payment the house would not appraise for what the tenant agreed to pay forcing the deal to fall through.
• The option was not extended till the price was appropriate and the landlord kept everything.

Thor Services likes to take the win win approach to the Lease with Option.

1. First the option fee is what the security deposit amount would be and is automatically added to the earned bonus to be used as either down payment or buy down the price.
   
2. The option stays valid as long as there is a valid lease between the parties involved.
3. The rent can only go up by a maximum of 5% per term of the lease.
4. The pay on time bonus can either buy down the price or go towards down payment or a combo of both. Whichever the tenant wants at the time of closing.
5. The tenant is responsible  for the first $5oo of any repairs during the lease with option.