Course Code: 71821 (3.0 CE Credit Hours)
Everyone understands traditional rentals. Landlord rents to a tenant, tenant pays security deposit, landlord pays to make all repairs and maintenance, tenant either gets evicted or vacates sometime in the future.
If a tenant has to be evicted, the property owner incurs holding costs while not receiving rent. The property owner pays court and legal costs to evict the tenant. The property owner pays to reclaim and prepare the property. If the property is managed professionally, they will have to pay the first month’s rent as commission. The only thing to offset this long line of expenses is generally a security deposit.
Even if the tenant vacates on good terms and the property is left in “good” condition, the property owner still has to go through the entire turnover process except that the property owner has no security deposit because it was returned to the departing tenant.
What if property owners had a more profitable alternative to traditional rentals? This is where Lease-Option transactions come in.
Lease-Option transactions often involve little or no security deposits. That means fewer trust account issues. In its place, non-refundable option money (often two to four times more than security deposits) is paid the property owner in exchange for the right-to-buy. Tenants who seek out lease-options have the intention and mindset of home ownership moving in. That means they are more likely to care and take on more of ongoing maintenance of the property vs. a traditional tenant while paying more upfront money to move in.
Lease-option transactions are rare in the marketplace because few property owners and property managers understand it. Lease-options are highly sought after by many in the marketplace. Lease-option tenants are often willing to pay higher rents, pay higher upfront money, and pay a higher purchase price. And in the event of default, the property owner has much more money in hand that far exceeds any traditional security deposit. In this course, we go far beyond what is taught in prelicense or postlicense courses. Come learn how lease-options work, how to market them, how to find and qualify the right tenants, and how to structure lease-option transactions for success. Once a property owner learns the power of lease-option transactions, they may never go back to traditional rentals.
☑️ This course has been approved by the Georgia Real Estate Commission.