You will make more money and get better tenants by making your property available for lease with option to purchase.
Folks who put down a lot of money and pay a monthly premium who intend to purchase your property generally make much better tenants. You will also save a significant amount of money in rehab and appliances if you offer lease-option incentives at the back end of the deal. In the rental market, you will rehab your property at least every 3rd tenant. With a lease-option it is about every 5th tenant.
Your property will move faster as a lease-option than it will with a standard rental.
This surprises many investors. The reason is because there are more properties available for rent than there are for lease-options. Limestone Investments has over 2800 buyer/tenants on a distribution list. These folks are waiting for the right property to come along. In summary, there is a short supply and a large demand for rent to own properties.
Decide your strategy before you close escrow.
Most investors are so exhausted once a property goes into escrow that they go to sleep. They throw away a whole month of income away while they dilly dally and debate between renting or doing a lease-option. Decide now so we can get a tenant by the time we close! If a tenant wants a particular home in a particular neighborhood, they will be elated to find out what repairs will be made and when they can move in.
Don’t try both strategies at the same time.
Investors who try to do a lease-option and a standard lease at the same time just end up confusing a tenant/buyer. There are a lot properties that are available for rent and if you confuse a prospect, they will simply pick a property that’s easy to understand. There are so many shady agents running around Las Vegas that some prospects will move along because they think we are trying some “bait & switch” technique. Trying both strategies at the same time just makes the property harder to move.
Adjust the price of the property every week until your property moves.
Very small weekly adjustments in the price of the property will keep it fresh on the web radar. It will also enable you to get the best price for your property. Making massive changes to price every 2 months is the worst thing you can do. Since we broadcast properties on Mondays, it’s a very good idea to adjust your pricing no later than Saturday.