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Should the Tenants of Rental Properties Be Given the Option to Sign A Lease-to-Own Contract

Should the Tenants of Rental Properties Be Given the Option to Sign A Lease-to-Own Contract

It’s great having rental properties because they are a great source of passive income. But so can lease-to-own rental properties.  There are several advantages to offering your tenants the option that they can later have a lease-to-own option for their rental home.

If a tenant can’t afford a home and has to rent because of poor credit history or from outstanding debt, and are working to improve their credit worthiness, it is a good idea to offer a lease-to-own contract. Many tenants will appreciate that offer especially if they can start the lease option contract after living in the home for a while.

Advantages of Lease-to-Own Contracts for Your Rental Properties

The first advantage of allowing your tenants to do lease-to-own is that they will most likely treat the home as their very own. They will develop a sense of pride of ownership beyond what they would normally have for rental property. The tenants will act as if they’re treating it as their own home. This means that they will be less rough on the rental property, usually keeping it cleaner, and will keep the home and better repair.

The second advantage to consider lease-to-own is because often the tenant will want to make improvements to the home on their own. This is advantageous because it shows the tenant is willing to stay longer and will be on track to eventually purchase a home. And if things don’t work out and you’re forced to evict because the tenant doesn’t pay the rent, then you have a home with improvements.

Should-the-Tenants-of-Rental-Properties-Be-Given-the-Option-to-Sign-A-Lease-to-Own-Contract - 2 - Mike-MarkoThe third advantage is one that I just really enjoy. That is because I require a significant buy-in in order to start the lease-to-own contract. Depending on the sale price of the home, I will require the buy-in between $2000 and $6000. This infusion of cash will often take care of a significant portion of the expenses you had in acquiring a home in the first place… especially if you purchased a home with a mortgage.

The fourth advantage is that if you intend to sell the home anyway, you can now sell the home without the extra expense of paying realtors. That cost savings alone is huge and worthy of considering a lease-to-own contract.

The fifth advantage to consider with lease-to-own contracts is that the home is occupied until the point-of-sale. Not only do you have the home rented and you are generating income that should at a minimum cover the mortgage and repair expenses, you also have a sale without a lag of no income.

So you can see if there are lots of advantages to considering lease-to-own contracts with your tenants and your rental properties. I will wish you the best in your future landlord endeavors.

For more information check out Showing Rental Properties to Potential Tenants, How to Find the Best Tenants for Rental Properties, and Should the Tenant or the Landlord Pay For Utilities in Your Rental Properties?

Should the Tenants of Rental Properties Be Given the Option to Sign A Lease-to-Own Contract

Author: Mike Marko
Twitter: @mikemarko1
Facebook: mike.marko.37
Google Plus: Bren And Mike Prosperity Tips
Skype: r.mike.marko
Phone: (513) 580-4598
Email: [email protected]

 

Disclaimer: This commentary is a matter of opinion provided for general information purposes only and is not intended to be taken as investment or trading advice under any circumstances. Information and analysis above are derived from sources and utilizing methods believed to be reliable, but we cannot accept responsibility for any losses any person may incur as a result of this analysis. Individuals should consult with their personal financial advisers. By using this web site or any information contained in it, the user specifically and expressly agrees that no advisor-client relationship is created between said user and any author, owner, executive, or principal of this web site by either use of this web site, or by any information, product, or service offered by or on this web site. No express or implied guarantees or warranties as to investment or trading results are made, and any perceived insinuations of such are hereby expressly disclaimed.

Article: Should the Tenants of Rental Properties Be Given the Option to Sign A Lease-to-Own Contract

Should the Tenant or the Landlord Pay For Utilities in Your Rental Properties?

Should the Tenant or the Landlord Pay For Utilities in Your Rental Properties?

When you own single-family homes as rental properties, the question will home up whether you should make your tenant pay for the utilities OR you pay for the utilities and increase the cost of the rent.

For the longest time I was in the camp where I prefer to have the tenant pay for all the utilities for the rental property.  Watch the video below to see my thoughts on this now.

Who Should Pay For Utilities In Your Rental Properties

There you have it… my thoughts on the question, “should the tenant or the landlord pay for utilities in your rental properties.”  I hope this helps you!

For more information check out Showing Rental Properties to Potential Tenants and How to Find the Best Tenants for Rental Properties.

How to Find the Best Tenants for Rental Properties

Author: Mike Marko
Twitter: @mikemarko1
Facebook: mike.marko.37
Email: [email protected]

 

Disclaimer: This commentary is a matter of opinion provided for general information purposes only and is not intended to be taken as investment or trading advice under any circumstances. Information and analysis above are derived from sources and utilizing methods believed to be reliable, but we cannot accept responsibility for any losses any person may incur as a result of this analysis. Individuals should consult with their personal financial advisers. By using this web site or any information contained in it, the user specifically and expressly agrees that no advisor-client relationship is created between said user and any author, owner, executive, or principal of this web site by either use of this web site, or by any information, product, or service offered by or on this web site. No express or implied guarantees or warranties as to investment or trading results are made, and any perceived insinuations of such are hereby expressly disclaimed.

Article: Should the Tenant or the Landlord Pay For Utilities in Your Rental Properties?

How to Find the Best Tenants for Rental Properties

How to Find the Best Tenants for Rental Properties

It is very important to have good tenants in your rental properties because they help ensure that you have the cash flow.  Nothing will cause a bigger drain on your finances then tenants that are either destructive or do not pay the rent. You also don’t want to have a huge drain on your time. Having to chase the rent, or do nit picky repairs, can cost you have a lot of your time and money.  This is the reason why careful tenant selection is imperative to your success.

The number one strategy to finding a great tenant is to create competition. Being able to choose from among several candidates will help ensure that you have the tenant that you want. If you find yourself in a situation where you have only one candidate then you are at a disadvantage.

There are several ways to help ensure that you have multiple candidates to choose from. These include:

1) Have a competitive rent for your rental property. If you have a competitive rent compared to others in the area, depending on market conditions, you should have several candidates to choose from. You want to create a situation where tenants are clambering over themselves to rent your home.

2) Ensure that your rental property is as good as or better than the competition. Don’t show a home in great need of repair, smells, or in general is not as appealing compared to other rental properties in your area. Updating fixtures and cabinets could be required, but often not needed. By ensuring that your rental properties as good as or better you’ll make sure that you do not turn off candidates that would want to rent from you.  That being said, you also don’t want to overdo the renovations within the home.  You don’t want to have a home that is nicer than the average neighborhood home because you’ll be wasting your money.

3) Create a sense of urgency and competition. You the feeling of urgency by making sure the other tenants are aware there are candidates who also want the rental home. I do this by scheduling specific times throughout the week when the rental properties are available for viewing. This is often two maybe three times throughout the week. I make sure that the times are different for each appointment. I then tell the candidates that they have a couple choices of appointment times to choose from instead of allowing them to pick a time that suits their needs. I may lose some candidates this way but what is much more important is having the sense of competition. I then tell the candidates that the appointment is for a certain time. I do not give them a window of time. I give the impression that if they’re not there the time that they will miss out. I then arrive for the appointment a couple minutes late.   By the time I have arrived I have already accomplished the sense of urgency because the other candidates will be aware that they are not the only ones looking at the home.  And everybody quickly realizes that they must act fast if they had any chance of renting the property.

4) Continue to the show the home until you have a signed lease (and don’t sign a lease without at least the damage deposit). By having candidates in the waiting you can help ensure that you have substantial pool of tenants to choose from. Nothing is absolutely committed until you have something in writing… so keep your options open.

How To rule out tenants that you do not want in your rental properties

It is easy to rule out candidates if you follow these basic steps.

First of all make sure on your application form you make it clear that if the application is not complete then they then may be automatically rejected.

Second never tell a candidate that they are rejected, but instead present them with challenges that we must overcome. For example if the employment history is questionable because they are self-employed then have them provide several months of documented proof of income. Let the tenants rule themselves out if it is a candidate you do not desire.

There you have it… the foundation to help ensure you find great tenants for your rental properties.

For more information check out Showing Rental Properties to Potential Tenants.

How to Find the Best Tenants for Rental Properties

Author: Mike Marko
Twitter: @mikemarko1
Facebook: mike.marko.37
Email: [email protected]

If you have a passion and want to share it with the world, and want to make money while doing it, then check out www.urmoneymagnet.com.  Learn how our viral blogging system can work for you.

 

Disclaimer: This commentary is a matter of opinion provided for general information purposes only and is not intended to be taken as investment or trading advice under any circumstances. Information and analysis above are derived from sources and utilizing methods believed to be reliable, but we cannot accept responsibility for any losses any person may incur as a result of this analysis. Individuals should consult with their personal financial advisers. By using this web site or any information contained in it, the user specifically and expressly agrees that no advisor-client relationship is created between said user and any author, owner, executive, or principal of this web site by either use of this web site, or by any information, product, or service offered by or on this web site. No express or implied guarantees or warranties as to investment or trading results are made, and any perceived insinuations of such are hereby expressly disclaimed.

Article: How to Find the Best Tenants for Rental Properties