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
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.