Lease Agreement Insert Option Choice For Free

A lease option allows the landlord to retain the legal title of the lease option property, without the mundane management responsibilities. Lease options are also an ideal way of securing long term tenants. Most lease-options are for an average term of between 7 and 10 years.

A lease option is different from a lease purchase contract, in that a lease purchase binds both parties to the sale, whereas in a lease-option the buyer has the option but the seller does not.

Names of all tenants. Limits on occupancy. Term of the tenancy. Rent. Deposits and fees. Repairs and maintenance. Entry to rental property. Restrictions on tenant illegal activity.

Lease-option contracts give you the right to buy the home when the lease expires, while lease-purchase contracts require you to buy it. You pay rent throughout the lease, and in some cases, a percentage of the payment is applied to the purchase price.

The term of the option may be any period on which the property owner and renter agree, but is commonly one to three years. The lease option contract also stipulates the property's purchase price at the start of the lease or how that price will be determined at the end of the option.

If a landlord grants an option to renew a lease, he is committing to the tenant's occupancy for both the initial term and the term of the option.So, a 5 year lease with a 5 year renewal option is a 10 year commitment by the landlord.

Document everything in writing. Keep a written record of everything that is agreed on, and be careful to use the right terms in the agreement. Consult an attorney. Use separate agreements. Keep the term short. Take a security deposit. Pay like an owner. Factor in repair costs. Don't give large rent credits.