What are the advantages of rent to purchase or “Lease Option Agreement
- You get more from the sale using this method of sale because the you benefit from both the monthly guaranteed rent and the purchase at the end of the lease.
- You have no legal responsibility on the building. This is passed on to the leaseholder.
- You are no further liable for any upkeep for the building.
- Any responsibility on compliance with he ever more complicated legislation on residential real estate is passed on to the leaseholder.
- You still own the building during the lease period and still receive rent from it without any responsibility from your part. Effectively you are benefiting from the rental income without any responsibility as you previously had.
- You have an agreed sale option that the leaseholder can exercise at the end of the lease.
- This option can relieve you from any problem property you may have very quickly where sales are hard to come by.
The rent to purchase option does not have anything to do with the tenancy agreements in which you are responsible to the upkeep of the house, any maintenance and compliance with legislation. With the rent to purchase done with a professional investor, all responsibility of up keep, maintenance, compliance with legislation is passed on to the investor. Also any building insurance is the responsibility of the investor.
Basically once the property in leased you can forget about it, it is not of your concern anymore, no more phone calls from tenants of worries about arrears or anything of the sort. It is as if you have already sold the property but you are still enjyoing income from it without having any legal responsibility on the building.
This can be the best option for you if you want to sell your house and for some rrason or another you are struggling to sell it.