What if the tenant trashes the property?

On a lease option, it is very unlikely that this will happen. You are putting tenant buyers in the home who put down 3-5% down on these homes. They lose that if they don’t buy the house. The tenant buyer also has the mindset of a homeowner. They are responsible for the day-to-day maintenance and repairs. The odds are small of this happening but you can’t guarantee it won’t happen. Here are some options that you have...

  • You can tell the seller. “Call me back and we’ll put a tenant buyer in there who will fix up the home.” Then you can advertise the property as a handyman special.
  • You can get an extended home warranty if you want.
  • You can also tell the seller “What if I took care of all of that for you? What would you want to do them? I know you are worried about it. What if I showed you a way that I worry about that and I fix anything that happens to this house. If I can show you how to do that, is there any reason why we can’t do business today?” Answer their question or objection with a question. Then you could go into a sandwich lease option and stay in the middle (if the numbers work).
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