To avoid headaches and tap into a wider pool of prospective tenants, many landlords consider the lease-purchase of their home. This option attracts many potential buyers who could handle the monthly mortgage payments but can’t afford the required down payment. Here’s how it works: You lease your house to the tenant for a specific monthly rent. In addition, the tenant pays you for the right to purchase the home within the option period, usually six months to two years later. This payment is called the option consideration. The option consideration payment is usually made up of two parts. The first part is an.
