The 11 Documents to Use When Getting a Tenant for Your Lease Option Deal

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Last week I gave a very detailed description of all of the documents you need when doing a lease option with a landlord (all 10 of them). This week I am going to cover all of the documents you need when you find a tenant/buyer for your lease option deal. In no particular order, let’s get started…

  1. Payment Policy – I make every tenant/buyer sign this form that states my company takes on-time rent payments very seriously. We start evictions on the 5th of the month and there are zero excuses for non-payment of rent. (If a tenant doesn’t want to sign this form that should be your first clue to find someone else.)
  2. Option Agreement – This document states I am giving the tenant an option to buy the house for X amount of dollars anytime within the next 12 months. (I would not go longer than 12 months because you can always write a new agreement if need be.)
  3. Property Maintenance Agreement – My tenants must sign this form that says they are responsible for the first $300 of any repair. And that I will cover all amounts over $300.
  4. New Tenant Information – This document explains to the tenant what mailbox is there’s (if it’s a townhouse), gives them my cell phone number for emergencies, tells them what day is trash day and anything else they need to know about the property.
  5. Lease Option Disclosure – This lets the tenant know that I am not the owner of the house and I may have an option on the house myself.
  6. Agreement to Hold Property – If I have found a great tenant who needs time to get the option money I will have them give me a $2,000 non-refundable deposit to hold the house.
  7. Lease With Option to Buy Receipt – This is a receipt they get at move-in day which shows all the money they paid (option money, first month’s rent) and where that money is being applied.
  8. Renter’s Insurance – A tenant must fax back this form to me proving they have renters insurance.
  9. Rental Agreement – I have them sign my iron-glad rental agreement which is separate from the option agreement.
  10. Property Disclosure/Disclaimer – I fill this out and give it to the tenant to let them know of any problems with the property.
  11. Move-in Condition form – On move-in day we walk through the property together and evaluate the condition of the property.

It may seem like a lot of forms, but if you use them all it will make your deals go a lot smoother, especially if you should ever get into any legal trouble. (Thankfully, I’ve never had any problems, knock on wood.)

About Author

Jason R. Hanson is the founder of National Real Estate Investor Month and the author of “How to Build a Real Estate Empire”. Jason specializes in purchasing properties “subject-to” and has purchased millions of dollars worth of property using none of his own cash or credit.

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