Rental Property
Owner occupants make better tenants
By
Sep 14, 2005, 23:37

If a tenants feels he is going to own the property someday, he is not going to cause problem. He is going to stay on your good side. he is going to pay his ret on time. he is going to keep the property in good shape. If he trashed it, he will be trashing his own investment. He is going to be a trouble-free tenants, the kind of tenant you want to deal with.

The problem is, lease option don't always work. In some situation they won't work for you because you don't really wan to to sell the property. Yu may find you just can't seems to get people to pay enough rent to cover your payments unless you offer then an option on really reasonable terms. And if you do offer prospective tenants an option at reasonable term. the chance are they are going to take you up on it. They are going to exercises their option to purchase the property and you will wind up having to sell it, whether you want or not.

In other cases you are going to find that a lease option just isn't attractive enough to prospective tenants, no matter how reasonable the term are. If you are in strong tenant's market or a strong buyer's market, you might find that the prospect of a lease option just doesn't excite people - particular if they will have to come up with down payment money and qualify for a loan in order to exercise the option and purchase the property.

In order to bring in enough rent to cover your payment, you may have to try some other alternatives. You may have to find some other way of convincing tenants that they have a stake in the property. Equity sharing can be an excellent way to do this.

It can work with properties you already won as well as with properties you are contemplating buying.