Lease options offer would-be buyers a specified amount of time to qualify for a conventional mortgage before they purchase a property while enjoying all of the perks of homeownership.
The benefits of the rent-to-own arrangement far outweigh the risks for savvy sellers. So, read on as we explore using a lease option to sell your house in Baltimore.
Option Fee and Rent Premiums
The option fee provides the exclusive right to buy the property to the tenants using a lease option to sell your house in Baltimore. If your tenants choose not to exercise their option to purchase the home at the end of the agreement, you’ll still have profited from the option fee and rental premium you keep.
When using a lease option to sell your house in Baltimore, you’ll save all the holding costs for your investment property while the property continues to appreciate and build wealth. And if the tenants leave, you’ll have had everything but your taxes and insurance covered during the lease term while the property increased in appreciation and built wealth.
If you’re considering a lease option to sell your house in Baltimore, it’s important to understand the motivations of buyers who are interested in this type of property. In most cases, buyers seeking rent-to-own properties are looking for a bit of extra time to get their credit ducks in a row and build up a downpayment. Or, they may simply wish to test drive the property before committing to a long-term purchase – often, buyers are willing to take on the financial risk of the lease option after having experienced bad neighbors or other issues with another property. Whatever the reason, by offering a lease option you’ll open your property up to a real estate market sector where properties are in high demand. And if you structure your lease option correctly, you can realize significant returns.
You should ensure the option and the lease remain as separate contracts. For sellers, there is very little management of the property itself involved when you’re using a lease option to sell your house in Baltimore. However, your tenant screening system could make or break the deal. Working with seasoned real estate investors like the professional home buyers at CR of Maryland LLC and their property management team means you’ll have the best tenants.
You should be upfront with your lender about using a lease option to sell your house in Baltimore to ensure there are no conflicts with your mortgage’s due–on–sale clause. In addition, acquire a home warranty that covers significant repair work or requires the tenants to pay for one to protect your investment. Typically in these agreements, the tenants are responsible for repairs up to a certain amount. Additionally, as a real estate investor with residential rentals, you must remain on top of the laws governing your properties and any changes in those laws, along with an intricate knowledge of the Baltimore market, future city zoning, and economic planning to keep your portfolio as healthy as possible. Finally, it’s advisable to team up with an active local professional investor like the professional home buyers at CR of Maryland LLC, keeping you ahead of the game so you can adjust your investment strategies and keep your portfolio healthy.
Ready to sell your house in Baltimore? CR of Maryland LLC is ready to buy, giving you your asking price via rent-to-own. Why wait? Our contract terms are simple, and we believe in total transparency; if you have questions about the process, we’ll answer in full detail with no obligation. At CR of Maryland LLC, we’re your neighbors here in Baltimore; we’re proud of the work we do every day to help our neighbors and improve our community. At CR of Maryland LLC, our professional investors will make a deal you’ll feel good about long after you’ve left the closing table. Call CR of Maryland LLC at (443) 391-7080.