My First Lease Option Need Help
I just closed on a 2/3 bedroom 1-1/2 bath house that "was" to be a rental @650 + utilities a month. I have always wanted to try the lease option route and decided to do so with this place. The place needs new cabinets in kitchen(unless i try to get out of it cheap and paint the old ones) new floor in1/2 bath, paint through out and the HW foors sanded and finished and some other minor work. My ad starts next week and reads " Rent to Own 5 room 2/3 bedroom 1-1/2 bath house Option deposit required rent stating @ $700 + utilities"
My intention is to give a $100 credit towards purchase from the $700 rent or $200 credit if they want to bump the rent up to $750. Market rents in the area are $650. I dont have much money into this house as of yet and its market value with 4K worth of work will be 50K Should I rent as is (which of course id prefer) or Let them do the work on their house? I plan on using a lease form and a seperate option form.
Any comments or suggestions would be appreciated
Thank You
Johnnh
I am interested in the thoughts you members may have about this issue. Hope you get some good info.
Your ad is decent but a little restrictive for my taste. To generate more calls, I use much less information. My favorite ad is very simple "Owner will finance No Banks 123 main st anytown usa 3br 1 1/2 ba call 123-456-7890" I get a lot of calls and a lot of junk, but i always get the house occupied quickly. I too hate to sell... let my kids sell it after I'm gone. The psychology behind the ad is to get a better quality renter who has the deposit and 1st months rent (tough in my area) If someone comes through with more, great they can actually sign a lease and an option. More often than not though, using this method has gotten me solid renters.
Good Luck,
Shawn(OH)
I agree with Shawn. Less info in the ad is better. Personally I haven't had alot of success with ads in the paper, but that may just be me. In the ad I'd just put RENT TO OWN 3/1.5 and put your phone number or your 800 number. Set up group showings at the property to create competition. Good luck.
Ryan J. Schnabel