Do I have to let the seller know Im going to lease their house back out to another tennant when doing a lease option. So in other words when I agree to lease option a sellers house from him do I have to let him know upfront that I am going to lease it to own to other tennants?
Yes you do and you need to spell it out VERY CLEARLY in your lease/option agreement with the seller.
Also remember that a lease option is just that. A lease, with an option to buy the property at a given price within a given time frame.
It’s really not nearly as complicated to determine the answers to these types of questions as some seem to think.
Ask yourself, can you lease an apartment then sublet it out without the complex knowing? The answer, and I’m sure everyone here could get it right, is NO. That is ofcourse unless is says you can in the lease agreement, but they rarely say it’s ok to sublet without prior consent.
Subletting is popular up in the northeast, but most other places it’s not common at all.
Just remember, a lease option is a LEASE for all intents and purposes. If it is not, then it’s considered a contract for deed and that’s where all the legal / tax issues come into play.
How can you make money if you L2P and then go and LP to someone else after you have it. I mean you already paid the down payment option money and may have had to pay the deposit and possibly some months worth of rent before you find some to LP from you. Then what happens if they exercise thier option to buy from you. How do make any money from this deal? I’m trying to figure all this out!