Tenants Find Lease-Options Highly Attractive
June 2nd, 2011
More people are opting to rent instead of own their homes than ever before, but that does not mean that the “American Dream” of home ownership is dead. Would-be homeowners are just looking for a different path to that end, according to a recent survey conducted by a San Jose-based real estate company [1]. The company used a series of keyword-based ads and surveyed respondents. “The ratio of prospective tenants who are interested in lease-to-own programs versus rental are eight to one,” the firm reported.
Although any number of experts are predicting that traditional home ownership will continue to decline for years thanks to credit damage, hits to savings and general unease about home ownership [2], these results indicate that interest in home ownership has not necessarily declined. Would-be homeowners simply are looking for other routes since for many, conventional financing, for example, is out of the question.
Would you consider doing lease-option agreements with your tenants, or do you prefer to keep your rental properties as cash-flow investments?
Thank you for reading REJournalOnline!
Let us know what you think of lease-options in the space below.
[1]http://www.prlog.org/11515358-real-investor-tips-experiment-shows-high-demand-for-long-term-lease-to-own-from-renters.html
[2]http://www.eastvalleytribune.com/money/article_a6531ff6-8be1-11e0-a550-001cc4c03286.html
June 2nd, 2011 at 7:52 AM
I love this option the only problem I find is the landlords requires sometime very large down payments such as $20k which is out of the reach of many.
Secondly, the hoomes that have these options are not normally where you would want to live especially with a family.
June 2nd, 2011 at 8:11 AM
I wonder how many investors who would prefer to be selling property and moving onto their next deal are being forced to become landlords so as to generate something, rather than having those properties just sitting around waiting to sell.
June 3rd, 2011 at 9:58 AM
Given the lack of funding, the rent to own concept is gaining great traction from consumers looking for a great deal on a house. many of our customers come in looking for low-priced foreclosures, but after running into roadblocks getting a loan, they turn attention to our rent-to-own home listings as the next logical alternative. The RTO market shows great promise!