Rental Property Investor · Orlando, FL · Member since 2008 · 45 posts · 0 votes
I have a pending dilemma that I'm hoping someone on BP can help me with.
I have a lease option buyer (married couple) who was due to exercise their option in a couple of months. Just got a call from them stating that one spouse has been laid-off, and they will be unable to exercise the option. And they won't be able to consistently pay the rent at the current rate. So they want to negotiate a lower payment.
Any ideas on how I should best approach this?
One option I'm thinking is that I can simply tell them no, and take back the home to find another buyer. Another option is to accept a small rent cut, renegotiate a longer option period, and put clear and harsher penalties for any missed or late payments.
Investor · Chattanooga, TN · Member since 2009 · 1k+ posts · 903 votes
16y
I would cut bait. The point of a lease option is to sell the house to the tenants. The benefits being you get higher than market rent as well as sales price. Now they want to give you neither. It's unfortunate they are in that position but unless you would have trouble finding another L/O tenant or even just someone who would pay market rate, why would you want to lower the payment?