Starting a Lease Options business is a viable option for many people. We detail a number of key skills and methods of improving them in our eBook, but if you want a sneak peek so that you can see if you are the kind of person who could succeed with Lease Options then this is the blog for you.

Skill 1: Listening and Hearing

This sounds simple, after all, surely every time you listen you also hear. However, it’s not quite that easy. To build a successful lease options business you must not just listen to what potential buyers sellers and clients are saying, but really hear the meaning behind their words and all the things that are left unsaid. Listening to hear requires paying attention, showing your interest, sharing, and flexibility.

Skill 2: Simplicity

Lease Options don’t have to be complicated and difficult to understand – that’s our primary message. It’s still all too easy to overcomplicate things when speaking with clients and investors. Always try to winnow through all the information you have to identify what you should be communicating. Make sure you are not overcomplicating things, but are delivering the relevant information in a concise and understandable way.

Skill 3: Rapport

In your role as someone who works with Lease Options you will be dealing with a number of different people, all of whom have their own wants and needs. You will be speaking with property owners, renters, investors, landlords and developers. Always ask yourself the question, “Why should these people choose to work with me?” A major element in their choice will be how they feel about you as a person. Are you trustworthy? Do you understand their priorities? Are you easy to work with? All of these elements come together to make up the rapport that you have with your contacts. Building rapport is an area in which our ebook goes into significant detail, because of just how important it is to the success of your Lease Options business.

Are these skills some that you already possess or feel you could become proficient in? Is your interest piqued? If so, use the Lease Options Made Simple eBook for Lease Options advice and to guide you in developing a Lease Options business.

Lease options can be a great way for renters to gain the benefits of a permanent home and get themselves started on the property ladder. However, that doesn’t mean that you should jump in head first and take the first property lease option that you see. Always take the time to educate yourself about rent-to-buy so that you can make sure you get a property lease option that suits your circumstances. Make a start by asking these questions.

How Much is The Consideration?

When you sign up for a rent-to-own lease you will be asked to pay an initial fee, known as a consideration. This fee is an important part of the lease option, and should be factored in to your overall thoughts on the lease option benefits. Make sure to compare all the costs – a rent-to-buy property with a higher consideration and lower monthly rent may work out as a better deal than one with a lower up-front cost.

Do You Have the Option to Extend the Lease Option?

The fact that your circumstances might change as time passes is something that you should always keep in mind. When looking at a property lease option you may have run your budget and be completely certain that you will have saved the deposit needed to buy the property by the time the lease option comes up. However, if you have unexpected expenses or a decrease in income then your plans may not work out. In these situations being able to extend the lease option for another year or two is something that you will be very grateful for.

Does the Agreement Include a Deposit Scheme?

Part of why lease options are so popular is the way that they give renters the security they need to save for a deposit and buy the home that they have been dreaming of. However, as we all know it can be difficult to stick to a savings plan. Some lease options incorporate a deposit scheme into the monthly rent payments. In these situations a proportion of the monthly rent is set against the eventual price of the property when the lease option comes due. Should you choose to purchase the property then the initial cost is lowered due to contributions from your monthly payments.

It is essential to educate yourself about property lease options before you commit. These three questions will give you a good start in understanding your options, but if you want to know more our easy-to-use eBook can make you a lease options expert.

When people begin to learn more about the advantages of lease options and their benefits, they often begin to think that it must be too good to be true. It’s only responsible to learn all that you can about property lease options in order to make a more informed decision on whether or not they are right for you. One of the first questions many people ask about lease options is whether or not they have risks.

 Risks for Renters

When you go for a property lease option such as rent to buy, there are two potential risks that you should consider. The first is that your lease option will end before you have the funds to purchase the property at the agreed price. This means that you may forfeit your consideration, or the fee that you paid at the start of the lease. That is why you should ensure that the length of your lease option is sufficient for you to save for a deposit and afford a mortgage. The second risk is that the market will change and that the amount you have agreed to purchase the property for will be above market rates for similar prices. However, for many people, the security of knowing exactly how much they will need to pay for the property far outweighs the risk that they may have been able to find a home cheaper.  You may even have a clause that allows you to extend the option period in the event that property prices have not risen.

 Risks for Landlords

The biggest risk for landlords is that should the market rise in excess of your predictions you will have committed to selling a property for less than you could get on the open market. However, consider all the stress and worry that you are saving yourself with a property lease option – you have responsible tenants, a long lease, and some degree of insurance against a fall in the property market.

So, you can see that while property lease options, like all things in life do have their risks, the benefits far outweigh the potential disadvantages. A properly formulated property lease option will help you to avoid unexpected costs and problems, so make sure you educate yourself on property lease options and carefully read your contract before you commit.

If you have become interested in property lease options and rent to buy as a prospective homeowner, then you might be wondering just how you can make your dreams a reality. If you cannot find a suitable property already on offer with a lease option, then you should consider suggesting a lease option to your current landlord or to those advertising properties you are interested in. Use these tips to put your best foot forward.

 Know Your Facts

When speaking to a landlord about property lease options you want to be sure that you have all the facts at your disposal. They will very likely have questions about just what a property lease option is and how it is carried out. Make sure you can answer these questions and can point them towards further information or you may seem unprepared, meaning they could take you less seriously.

 Explain the Benefits

You have probably focused your research on what it is that a property lease option can do for you.  No doubt you could talk for hours about why you want a lease option, how you will benefit from it and just what a great deal it is for renters. However, if that is all you have to say to your landlord you may not get very far! After all, if your rent was reduced to £1 a month, that would be a great deal for you but your landlord would not be very happy. Make sure you know why a lease option is a good deal for your landlord, and focus your conversation on the benefits to her.

 Make it Personal

This doesn’t mean you should talk about your personal life, it means you should tailor your approach to the circumstances of the landlord. For example, if you notice that a property is re-advertised every 6 months, focus on the benefits of having a long-term lease with a responsible tenant. If property values are projected to fall in your area, spend time discussing the value of a fixed sale price at the end of the lease.

Lease options are often a great idea for both renters and landlords alike, and suggesting the option yourself can allow you to find the property of your dreams.  We would be delighted to assist you if you and your landlord want to take things further.  For more information and to get the ball rolling click here to email us.

In the last blog post I talked about how property lease options can often make sense for renters and those who are looking to buy property. However, landlords can also reap the benefits of property lease options in many different ways. Here are just a few of the advantages that property lease options can bring.

 Lease Options Draw in Reliable Tenants

The prospect of unreliable or untrustworthy tenants is one that worries many landlords. With lease options you are much more likely to attract reliable tenants who will take excellent care of the property. Why? Because they are working towards buying that property for themselves, and consider it a real home rather than just a place to live.

 Lease Options Insure Against Risk

One of the side benefits of these reliable tenants is the fact that they are committed to living in your property for the long-term. This means you have much less of a risk of needing to evict tenants or of having the property lie empty while you search for tenants to replace those who choose to leave. In the ideal situation you will have a guaranteed income for the duration of the agreement, followed by an injection of cash as the lease option is redeemed and the property is sold. However should your tenants be unable to purchase the property when the agreed period ends, you have still enjoyed a long tenancy in which the property was well maintained.

 Lease Options Make You More Competitive

In a conventional property sale your pool of buyers is restricted to those people who are already eligible for a mortgage and have saved the deposit that they need. In order to entice in buyers in a competitive market your only real option is to discount the price of the property. However, with a property lease option on the table your property is suddenly of interest to a much wider pool of potential buyers. Many people who would not be offered a mortgage today would certainly be eligible for one in five years when they have saved a large deposit. Offering a lease option can be a great way to up the appeal of your property without needing to take a hit on the price.

The more you learn about property lease options the more you will see just what a good deal they can be!

One of the biggest reasons why I am so enthusiastic about property lease options is the fact that all parties to the agreement can benefit. If you are a renter who is considering a property lease option for your next home, or is wondering whether you should actively seek out rent to buy properties, check out the potential advantages.

 Rent to Buy Gives Added Security

Renting a home can be a very stressful experience, especially when you have a family. There is always the worry that the Landlord will ask you to leave every time your lease comes up for renewal, meaning you will have all the worry of finding a new home. The effect this can have on your family, especially your children who may have to change schools is immense. With property lease options such as rent to buy you will generally have a much longer lease, allowing you to settle down and become part of the community.

 Rent to Buy Allows for Forward Planning

Trying to predict the vagaries of the property market can be extremely difficult. Spending years saving for a deposit only to find that house prices have risen and your careful saving has not been enough can be heart-breaking. then there is the fact that even when you have your deposit in hand, you may not be able to find any properties in the area that you call home. With property lease options you can plan with confidence, knowing how much you will need to pay and when in order to own the house that you call home.

 Rent to Buy Makes Home Buying Simple

If you have ever tried to buy a home in the past you know just how complicated and expensive the whole process can be. When you consider the issues of home inspection, the need for the current owner to also succeed in their purchase of a new property, the costs of moving and all the other little extra bits and pieces you will see that it is no wonder that many people consider moving home to be one of the most stressful experiences of their lives. A property lease option cuts through much of that confusion, as you have a guarantee that you can purchase the home you are living in at the end of the agreed time-frame.

For more information see more of our articles here

Recent news from the property market paints a gloomy picture for those who might have been hoping to purchase their own home. House prices rose in the South-East and London in May and recent news confirmed what we all know – our housing costs are some of the highest in Europe!

However, it’s not all doom and gloom, by learning about property lease options you may be able to get your foot on the property ladder without having to hope that you find a pot of gold at the end of the rainbow. In the conventional property market there are numerous barriers to home ownership that property lease options and rent to buy can help you to avoid.

Renting and Moving Costs

Your income may be enough to make your mortgage payments easily, but before you can get the mortgage and buy a home you have to save up for a deposit. The numerous ancillary costs associated with renting can soon eat into your savings. Moving from one house to another when a tenancy ends isn’t cheap!

Difficulty Planning

Then there is always the worry that when you have finally saved up that deposit you will find that the house market has gotten ahead of you. Your planned deposit amount is no longer enough and you are stuck playing catch-up.

Restricted Choices

For families there is another particular barrier. Work and school commitments can very much narrow down the areas in which you are able to live, so that the decision you make today could hamstring your property search in years to come. If there are no properties for sale in your area when you are ready to buy you could be forced back into renting.

With property lease options and rent to buy, all of these barriers can be smashed down. You agree ahead of time when you will have the option to purchase the home and for what price, making planning for saving much easier. You have a long lease period in the home that you are going to own, drastically cutting your moving costs and all those little extra expenses. Knowing that you will be able to purchase your home you can settle into the community, sending your kids to the local school without worrying that you will need to move them in a few years.

Learn more about property lease options with our other articles here.

We often receive email testimonies from partners and associates that we have been working with.  This one from Tom recently for our Lease Options service stood out to and we wanted to share it with you.

“Hi Mark,

I wanted to send you a quick update because I am a hairs breath away from closing my first deal.

I got it through and estate agent, using your 1p approach I decided to give them no room to negotiate me down, simply to say yes or no, I just wanted the agent to see how it works, so the deal is:

On the market for £134k, which I offered, I offered 80% of market value rent which is £520 vice £650, on a 6 year option, with the option to extend by two years.  They asked me for £5k upfront (i got the extension in return)

I have found a tenant buyer through the website who has £7k now (i’m asking for £6k upfront to more than cover all my costs), and is coming to view next wednesday.They have a good income but she has some bad credit history and cant get a mortgage at the minute.

They will pay me 820pcm so I will get £300pcm from a property I don’t own, and will have no voids on, if they rent it for 5yrs I will make £18k, not bad considering I just gave them full asking price, and its got me on with the agent.

I have to say I simply could not have done it without the pack I got from you, the key facts, the offer letters, all the literature and bits, all helps in giving you enough confidence to make it happen.  It has taken a while, lots of offers are just turned down, but I’m sure more will follow!

Many thanks for your help and support, if I can ever do anything for you please let me know.”

What we like very much about Tom is his passion for what he doing and his commitment to making a success for himself.  We gain inspiration from people like Tom and hope that you do to. Making £18,000 in 5 years is excellent.  Now imagine having 20 properties that all do that…

That’s the power of Lease Options.

Don’t forget to visit our shop for more information on the products and services we offer.

Have a Back-Up Plan

This is one of the most important I feel of the top five tips to avoid lease option problems.  It links well with part one in our series of Lease Option blogs also.  Some investors are so keen to get going with lease options, which isn’t always a bad thing, that they sign up property option deals without considering the ‘what ifs’.  What I mean by this is what happens if the tenant you have put in the property doesn’t pay you the rent on time one month?  Do you have enough cash to continue to pay the monthly option commitment until the tenant does pay?

Consider a Contingency Plan

Consider a contingency plan.  Do you have a small cash reserve you have built up that can pay for your monthly commitments if the rent or your income changes?   Perhaps relatives or a business partner may joint venture and offer secured funds if they are needed.  As part of the process of taking a lease option, include ‘having a back-up plan’.

Thinking Point – consider putting any tenant fees you decide to charge in to a pot for times when you need some cash.  You might be surprised how quickly a contingency fund builds.

What is coming up in our next blog?

Our next blog, part 3 of the top five tips to avoid lease option problems, will discuss not relying on the market when signing up a lease option deal.  Remember, if you cannot wait for part 3 of my top five tips to avoid lease option problems then check out our educational products here.

The Top Five Tips I Have Learnt Personally to Avoid Problematic Property Options.

As a specialist in Lease Options and having used them personally for many years I have learnt some invaluable lessons in avoiding bad Property Options.  If you are a newcomer to the Lease Options Made Simple website you can learn more about us here.  Having made the mistakes ourselves we are well place to help you avoid lease option problems.  Over the next 5 blogs I will share with you my top five tips:

1.  Don’t Be Too Eager

It may come as a surprise to some of you but one of my very first Lease Option deals ended up costing me over £8,000.  At that time I had been learning Lease Options as fast as I could.  I was full of energy and spirit.  I had just discovered a way I could control and profit from property I didn’t own and I could not wait to do as many deals as I could.  And that was the mistake.  I was too eager to take any deal I could find.

My tip is don’t be too eager to get the lease option deal done.  Take a step back and look at all the information you have again.  If there are any gaps, fill them in.  Ask more questions if you need to.

Thinking Point – imagine a lease option is like the Sistine Chapel ceiling.  Close up it can just be a mix of colours that doesn’t show the whole picture.  But take a step back and you will see the beauty…

Can’t wait for the next blog when we explore ‘having a back-up plan’?  Why not invest in our educational products and learn all about my top five tips to avoid lease option problems and much, much more.