Less Formal L/O Agreement
Has anyone tried something less formal than a straight out L/O agreement? I spoke with my propery manager about a property I am getting ready to rent. I asked if I could mention in the lease that I would be willing to sell the property after 1 year at the appraised value and offer the tenant 6 months rent towards the purchase. He said that would be fine but he hadn't had anyone do that before. It seems like a way to get the tenant to take care of the house if he thinks he may buy it some day even if he doesn't. If he does buy, I still make a nice profit. Anyone tried something like this before?
If your property is a mobile home with leased land or within a home owners association, ensure that the covenants (rules) will allow you to rent the unit. There may be requirements for written permission to be granted.
Eric & Rosa
[addsig]
Never seen it but I love the idea! Keep working your creative thoughts!!! Nice job.
Nothing wrong with the idea. Just add a short paragraph to the lease. In reality most (stationery store) options aren't even that long.
The two things I don't like are giving up 6 months rent and an option without any option consideration. I'd say that you're anxious to unload this puppy.
Thanks for the feedback. The reason I was considering this idea is at least two fold. First, I this property would make an excellent long term rental but it is a very nice property which could lose a lot of value if I got the wrong tenant. I was hoping it might be added insurance to offer the tenant the opportunity to buy it one day. Hopefully this would encourage them to take better care of it. On the other hand, if they were to buy it I would do very well also. As a followup, I just had my realtor go through the property and she suggested that I would be able to get an excellent renter in this particular neighborhood so I should just do a straight rental. I think I may still try this strategy though, if not now, sometime in the future to see how it works.
Might want to run that across your attorney. The reason a formal lease and a formal option agreement are used, is so that all the details are spelled out. Less confusion means less chance of the big bad landlord/ seller/sleazeball ending up in court. Especially in this day and age where anyone who has a little extra jingle is viewed as taking advantage of the little guy.
Good Luck,
Shawn(OH)