To Rent Out -OR- Lease/Option, That Is The Question
I was just wondering, as a rule of thumb, which is preferrable.
Now I know the first reaction would be "Well that depends on the situation", but what I am asking is "given all things being equal" what is would most of YOU do with a property you own.
I face that dilema now and would like to know ALL your thoughts.
Thanks in advance to all those responding..
Jeff
Hey Jeff, you should get several replies to this question and I am looking forward to what others will say. I have one property that I currently rent. I wanted to do a lease to own and have them take over the maintenance on the property and pay a higher payment but they decided that they would rather just rent. I don't mind the rent and they are good tenants who look like they will stay for about 8 or more years. I am open to doing either and would like to hear from others what they prefer.
I used to be all about the rent and hold. Now I have developed a little criteria that includes l/o and selling outright on a contract for deed. If I have a nice place with lots of maintenance (yard, sprinklers, gutters, central air) I go for the l/o or sell on a contract. Regular tenants simply will not do the work necessary to maintain stuff eventually. Other places I have that are large (I have had great luck and CF with 5 beds) in less attractive but not terrible neighborhoods, I rent outright. A lot of other factors go into place, of course, but you should have much higher quality tenants with a l/o. How much consideration is common in your area? $3000? $5,000? more? Can you get a last months rent? First, last and deposit will usually equal the consideration on a l/o so you may be better off renting. Anyway - nice property, lots of maintenance = l/o. Hope I have helped and happy landlording!
Rent apartments (more profit to make up for the additional headaches) and L/O homes. I would never rent a house.