Posted by Heather -Tx on January 02, 2003 at 23:07:11:
Don’t take what I say with more than a grain of salt =) I have yet to do a L/O. I have read and discussed extensivly on them though and from what I have gleened so far the best scenerio is have the tenant/buyer cover the first $200 or so per month, and the owner to cover anything over that.
Hope this helps,
Heather-Tx
Tenant buyer maintence responsibilities - Posted by Nikki
Posted by Nikki on January 02, 2003 at 23:03:08:
On contracts with a lease option tenants is it best/legal to make them responsible for all maintenance or just the first few hundred?
Re: Tenant buyer maintence responsibilities - Posted by Dick Chelten
Posted by Dick Chelten on January 03, 2003 at 22:36:08:
I’m a little different than most investors I read here. I look for blemished tenant/buyers who have 5% for a NROC, then go with them and purchase the home of their choice from the MLS(taking the 3% real estate commission since I am also licensed as a real estate agent). We do a home inspection and my lease says tenant/buyers are responsible for the first $5,000 of repairs. I want them to think of this home as theirs, they picked it, we had an inspecton done, why should I have to pay for repairs? Also, we always buy properties with a one year home warranty.
I’ve read Alex Guravetich (sp?) course, and he gives the tenant prospects a week to have the property (he has homes in inventory for rent to own) checked out (after receiving a deposit that can be used on any other Alex G home, as I understand it). If the tenant/buyer chooses to get a home inspection, fine. But,regardless, the tenant/buyer is responsible for repairs. Seems fair to me, but, then again, I look for nice homes in nice neghborhoods-the Charlie and Randy Fance method, of sorts.
PS: upon rereading this my son reminded me that we just agreed to pay for material neccessary to repair the floor in a home we just purchased for our new tenant/buyer. Seemed like the right thing to do in this case and it cemented our image as stand up guys with this tenant. So, perhaps I talk through both sides of my mouth, but my contracts clearly set the rules in my favor. If I choose to vary, it is my choice. I’m an investor, not perfect yet. Sorry for the rambling.
Re: Tenant buyer maintence responsibilities - Posted by BrokerScott (Mich)
Posted by BrokerScott (Mich) on January 03, 2003 at 11:46:04:
I use a graduated schedule- First year same as rentals, $50. Second year $150. Third and beyond $250. I do this so the potential tenant/buyer doesn’t get the feeling that they may be getting a pig in a poke.