Market changes are happening across the country and real estate investors are turning to lease options in order to sell properties. In the long run It can bring in more cash flow and will give you the power to focus on flexibility and other investments in the meantime. In our latest post, we explain why real estate investors should consider lease options in Danbury!
Real estate investors usually have properties they want to sell but haven’t been able to unload it at the price they want. It happens more times than few but as an investor you don’t need to take a loss. By using a lease option, you’ll be able to sell at the price you want, bring in extra income, without little or any risk at all. Keep reading to learn more about how lease options can benefit you!
Sell For The Price You Want
When listing a property with an agent in Danbury, there are no guarantees that you’ll get the price you want. You may find your property sitting on the MLS for longer than expected, forcing you to drop the price and negotiate . Many don’t know that with using a rent to own, or lease agreement with a potential buyer, you will be able to receive better asking price for your property. You’ll be able to set your selling price from the beginning, letting the tenant know what they should expect. While they can and even might try to negotiate the price, they really don’t have much bargaining power, so what you ask for, you will likely get. The only thing to be aware of is any major market changes while the lease option is in place. Even if prices rise dramatically, you will still need to sell them the home at the originally agreed upon price. On the other side, if the market does drop, you’ll still be able to get it sold for todays price as long as it appraises.
Generate More Income
Every month the home is rented by the tenant they will pay you a higher than average price to rent the home. In certain situations and agreements, a percentage of rent will go towards the down payment. This all depends on the situation the tenant is in and the terms of your agreement. Either way, you’ll be able to generate more monthly income from the property than if you were to simply rent it out. You’ll also have a guaranteed tenant over a longer lease term. They will have a more emotional interest in the property and treat more like their own home and not a rental. With this thought in their mind they will not want to break the lease for any reason.
With having a greater interest in the property, you’ll find that your tenants will take extremely great and meticulous care of the home as if it were their own. They’ll treat it as if it were there own, making the repairs necessary and ensuring all maintenance is being taken care of. Some tenants will even want to take on an unfinished renovation or upgrade on an outdated house to make their own while living there. Of course, this is subject to your approval, but it couldn’t depending on the condition of the home. It could even add value to the home in case of a default. You’ll be well rested and able to sleep at night knowing your home is taken care of. Why would you want to deal with tenants and toilets, when the tenants can take care of it for you. They will have much more pride in the home than just your average tenant.