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 Michigan.
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 Michigan. 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.
When using a lease option to sell your house in Michigan, 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 seeking rent-to-own properties may require time to get their credit ducks in a row and build up a downpayment. Or simply wish to test drive the property, intending to remain in their home for decades to come; often, buyers are willing to take the financial risk of the lease option after having experienced bad neighbors or other issues with another property. Whatever the reason, you’ll open your property up to a real estate market sector where properties are in high demand, and you can realize significant returns by using a lease option to sell your house in Michigan.
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 Michigan. However, your tenant screening system could make or break the deal. Working with seasoned real estate investors like the professional home buyers at Providence Homebuyers and their property management team means you’ll have the best tenants.
You should be upfront with your lender about using a lease option to sell your house in Michigan 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 Michigan 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 Providence Homebuyers, keeping you ahead of the game so you can adjust your investment strategies and keep your portfolio healthy.
Ready to sell your house in Michigan? Providence Homebuyers 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 Providence Homebuyers, we’re your neighbors here in Michigan; we’re proud of the work we do every day to help our neighbors and improve our community. At Providence Homebuyers, our professional investors will make a deal you’ll feel good about long after you’ve left the closing table. Call Providence Homebuyers at 3132171075.