Having a portfolio of properties at your disposal means, you are not only are subjected to pay tax but also need hefty some of the maintenance money. However, there are ways which you can use to lower your expense, but we’ll discuss that later at the end of this article.
There is still hope for people, who are trying to buy a property but can’t qualify for the mortgage. And, the reliable solution is lease options. Multiple reasons make the lease option Georgia great, and on the top is, you won’t have to pay a hefty sum upfront. This means people who claim they bought a house as low as $1 are claiming the right thing because they have opted for a lease. And, this allows you to pay a little upfront payment and sign the lease for a fixed duration.
If you consider whether you should opt to realize your dream of becoming a landlord, then you have a lease option in hand. Here in this article, you will find three key reasons that make the lease option highly reasonable.
1. As Low As $1 Upfront Payment
One of the best things about the lease option is you won’t have to wait to collect a minimum upfront payment or deposit to sign an agreement. Unlike in lease, you have to prepare a hefty list of documents that contain the credit score details, background information of mortgage buyers, income source declaration, and so on. However, not the case of lease.
Like many other companies that offer lease options and don’t require the lessee to pay any upfront payment have different criteria to evaluate the lease potential. Such criteria include having a minimum credit score of 500 and above, have a 50% debt to income ratio, a proven record of paying rent on time for at least 12 months, similar criteria are used by DreamAmerica. Moreover, once you qualify for the lease option and complete the agreed duration, you can actively decide whether to buy the house or sell the lease to another buyer.
2. Option To Opt-Out Or Sell Lease To Other
Another thing that makes the lease option great is, the lessee can decide the terms of the agreement. Usually, there are two types of lease options, one that offers freedom to opt-out of the agreement by the end of lease and the second legally bound the lessee to buy the property, otherwise have to pay hefty some for contract breaching. Hold on! the lessee decides the agreement type, so there is no need to be afraid.
Unlike other mortgages and lease-to-buy agreements, lease-to-option is highly flexible to the point that if you think that you cannot buy the property or you won’t feel attractive anymore then you can sell the lease to another buyer and keep the rent credit along with this, you’ll save Monday on upfront payment.
3. Try It Before You Buy It
In addition to lease-to-option, there is one more thing that makes the Lease option Georgia great for the first-time buyer that is pre-purchase experience. Finding the right house, where you can picture yourself getting old and sipping tea while gazing at the sunset is not that easy to find. A person has to go through several trials and errors to finally find the perfect match. Hence, lease to option offer you exactly that freedom. Moreover, residential leases consist of 1 to 5 years max, therefore you can utilize this time to explore the house, and decide whether you can buy it or not. If you find yourself in a situation where your answer is ‘Naah, this isn’t the HOUSE’ then you can sell the lease to someone else or simply fortified your right and never extend your lease.
Let’s get back to the benefit which we have pointed out earlier that how putting the property on a lease can help the landlords. Well, there are two reasons behind this, first, the freeholder can earn a reasonable amount of revenue in the form of rent. It is usually higher than the regular market price. Secondly, the freeholder can share the responsibility of maintaining the property by giving the lease an option of AST.
Parting Words
Buying a property is nearly becoming impossible especially with the sudden rise in property prices. Still, having a house, where you live without the fear of paying rent is a huge blessing. Unfortunately, the means to buy property are very narrow and require complex documentation, especially, when you are applying for a mortgage. Not all can qualify for one. So, the only option left, that offers more freedom is the lease to option. First, you can get into agreement with minimum upfront payment, and secondly, you can always opt-out if you don’t like the house. For this to work, you just have to sell the lease to another person and start hunting for the dream house somewhere else.
Also Read: How to Choose a Real Estate Agent
