Listing my first rental, lease option, advice needed

[Sonja Revells]

Hello, 

With the market being slow and our flip not selling I'm going to list it for rent.... however, I'd like to have someone who is ultimately interested in owning it and want to offer a lease option to buy, after one year.    I can't do that out the gate because of lender refinancing. 

   What should I be aware of, and leery of?   Where have people had the best luck finding tenants/buyers that fit this bill?   How do you structure the agreement?   What requirements do you personally look for when screening?    

First time doing this so bear with me.  Not new to investing just new to this part of it.  TIA   :)

[Patrick O'Sullivan]

Congrats on the property, Sonja. Lease options can work really well, but they do take some careful planning.

Screen tenants like buyers. Check income, credit, and job stability. Ask for a solid option fee upfront to make sure they are serious. Keep the lease and the option agreement separate and clearly outline the purchase price and terms. Decide ahead of time if they can make changes to the property.

Legal review is important, and for marketing, be clear in your listing that it is a lease with a future purchase option. Overall, focus on protecting yourself while attracting tenants who have the means and motivation to buy. With good screening and clear agreements, this can work very well.