Lease Option Situation Please Advise!

I am doing my first lease option a property that I own. My tenants asked if they could pay the rent on the 15th of every month as opposed to the 1st of the month which I agreed and they have been very good for the past year in paying their rent. But in the past two months they have fallen behind in paying as agreed. When I call and leave messages I dont get a return call. The way I have it set up is my tenants make their rent deposits into my checking account, I see they made two seperate deposits for the month of Sept a week ago but have yet to make Oct payment.

The L/O deposit was $3,000 which stated in the contract is non-refundable but goes towards the purchase if they decide to purchase during the term. The contract also states that if they are more then 5 days late with the rent payment I can cancel the contract. Since this is a property I personally own the late payments are causing my mortgage to fall behind (and access late fees) My delima is I would like to work with them since they have been such good tenants in the past and are probably just going through a rough time but at the same time this is ruining my credit rating! I want to write them a letter to terminate the lease agreement or offer for them to exercise the lease now (I have connections with loan officers who can possibly qualify them for a mortgage) or suggest maybe they have someone they know purchase for them.

Any feedback or suggestions on how I should word my letter or weather to send it certified or not is greatly appreciated!

Thank you

Comments(1)

  • InActive_Account19th October, 2005

    This is why you sould always keep some or all of the down, just in case.

    I would send one certified and hand deliver another. Also while your there have them sign a copy acknowleging that they where given notice.

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