Absolute Realty Group, LLC

195 Wekiva Springs Rd., #102
Longwood, FL 32779
Phone: (407) 673-1400
Fax : (407) 673-1401

How do lease options work and what are the benefits?

Most lease-option agreements specify that a portion of the rent on the property in question is applied toward the purchase if the option is exercised. This is referred to as rent credit. Institutional lenders accept rent credits as part of the down payment if rental payments exceed the market rent and if a valid lease-purchase agreement is in effect, a copy of which must be attached to the loan application.

For sellers, lease options give them several advantages, especially in a slow market. These include a monthly rent higher than market rent and top-market value for the property. Also, the renter is more likely to treat the property like an owner.

Posted in: Lease Options,