A short-term lease with option to buy is a type of contract that allows a tenant to rent a property for a specified period of time, usually between 6 months to 3 years, and then have the option to purchase the property at the end of the lease term. The tenant pays a non-refundable option fee, which is usually a percentage of the purchase price, to secure the right to buy the property in the future. The tenant/buyer also pays a monthly rent, The tenant can exercise the option to buy the property at any time during the lease term, or walk away from the deal at the end of the lease term without buying the property.

What are the Benefits of a Short-Term Lease with Option to Buy?

A short-term lease with option to buy can be beneficial for both the seller and the buyer in different ways. Here are some of the benefits for each party:

• For the Seller:
• Generate income from rent. The seller can earn a steady income from renting out the property while waiting for the buyer to exercise the option to buy. The seller can usually charge a higher rent than the market rate but not much than a mortgage payment would be for that home.
• Lock in a potential buyer. The seller can secure a potential buyer who is interested in buying the property in the future, and avoid having to market the property or deal with multiple offers. The seller can also negotiate a favorable purchase price and terms with the buyer at the beginning of the contract, and avoid any fluctuations in the market value of the property.
• Reduce maintenance costs. The seller can transfer some or all of the responsibility for maintaining and repairing the property to the buyer, depending on the terms of the contract. This can save the seller money and hassle in keeping up with the property’s condition.
• For the Buyer:
• Test drive the property. The buyer can live in and experience the property before committing to buy it, and see if it suits their needs and preferences. The buyer can also inspect and evaluate the property’s condition and features, and identify any issues or defects that may affect their decision to buy it.
• Build equity and credit. The buyer can build equity in the property by paying the option fee, which reduces their down payment when they exercise their option to buy. The buyer can also improve their credit score by making timely rent payments, which can help them qualify for a mortgage loan when they buy the property.
• Lock in a purchase price and terms. The buyer can lock in a purchase price that is favorable to them at the beginning of the contract, and avoid any increases in the market value of the property. The buyer can also have more time to save money for additional down payment, secure financing, or resolve any personal or financial issues that may prevent them from buying the property.

If you are interested in a short-term lease with option to buy, contact us at Azua Real Estate today. We are a professional real estate brokerage that can help you find and negotiate a suitable deal for your situation. We have extensive experience and knowledge in this type of contract, and we can provide you with individual attention, honest advice, and effective representation. Contact us today and let us help you achieve your real estate goals.