On my lease-option deals should I opt. for hard woods, laminte floors instead of carpeting incase I get some tenant turn over, it will be easier and less money to get ready to go on the market?
We use cheap berber carpet from Lowes for all our rentals that have carpet. This carpet looks great and is only 55 cents per square foot. Carpet is the easiest to replace when the tenants destroy it. Unless you’ve got a very high end rental, I certainly would put hardwoods or laminate in for the tenants to destroy.
If you are using the term ‘in case I get some tenant turn over’ you are doomed to begin with. You WILL get tenant turnover, and 2 our of 5 of them will destroy your flooring. Yep, they will have dogs pee on it, they will scratch it, they will ride their motorcycles on it, you name it, we’ve seen it…
Wood is a No No. For us, we get about 3 turnovers of tenants per carpeting exercise, which costs roughly $1000 per 750 sq ft laid for us. Carpet costs aren’t just the material. There’s labor to lay it properly, and underlay to make it work.
You choose flooring based on the economy of your rental unit. If you are renting to a low end economic tenant, choose tile if you can. Its damn near hard to damage and keep a supply of spare tiles for replacement if needed. Alternatively, commercial grade carpet, particularly in carpet squares is a good choice. As you move upwards economically in your tenants, upgrade to commercial carpet, then to residential hard wear carpet.
But wood? I mean why? You aren’t going to live there… Its like throwing money down the toilet if you ask me.
Ride their motorcycles on it… that’s funny! Sadly though, it’s probably a reality!
Well I know wood is pretty tough, we have it in our personal res. As far as turn-over I 've done 6 L/O and only had one leave after 2 months, so I guess it depends on your area. The others accually bought the house. Tile is a great idea, thanks
National statistics with Lease Options is about 92% don’t convert into a sale. So if that is the case, your results are quite remarkable.
We get out T/B’s set-up with a loan for a future date if they don’t have any additioal credit issues right at the begining. I get a larger option deposit…ect. The whole deal is contructed for them to get a laon in the near future. If you don’t do all of these things up-front than your just doing a rent-to -own. Most people don’t do L/O/ correctly thats way the high faliure rates.
Do you actually get the loan at that time, or just pre-qualify them? The reason I ask is that with the actively changing interest rates, and banking standards changing for loans all the time, coupled with any items creeping onto their credit report over time, I’m wondering how they continue to qualify say 1 or 2 years later for that same loan?
We’re in AZ and our bank mortgage requirements here have become more and more difficult over the past 12 months or so.