Can anyone explain to me exactly how rent credits work with a lease option? How can I entice my perspective lease option tenants to use them?
Rent credits are simply a percentage of the monthly rent that will apply as a credit to the purchase price, if and when the option to purchase is exercised.
The amount of the rent credit is negotiable between the parties involved, and can range from no rent credit, to 100%.
When you ask about enticing your tenants to use them, why wouldn’t they? Tenants are the beneficiary of rent credits.