I am selling a house and want to do a lease option on it.
I plan to charge $850 for rent and a $2500 option fee. I know that the lease and the option to purchase should be two different contracts.
Should I charge a security deposit? If so, what amount is customary in this case?
Should I still have the person to pay the normal first and last month’s rent?
Is there anything else specifically that I should do?
Thanks!
Some more details are needed.
Where is the house located? What is the local market like? What is the FMV of the house?
I ask because the terms you seek will be determined by local market conditions.
No
Yes.
The 2500 is for their OPTION to buy. It does not cover first and last months rent. Depending on what day you start the lease you might need to prorate the second month too, imo.
I also gift the tbs last month rent back to them if they go ahead and exercise their option. Just one more added incentive for them to buy.