This week’s episode of thoughtful Thursday it features Dave Mason. A Samuel Leeds employee who in the last few weeks has closed on an LOA and a Rent to Rent. Here he dives into a discussion with Russell Leeds to discuss the benefits of both LOA and R2R’s.
Rent to Rents are pretty straight forward as Dave explains. You will rent a property from a tired landlord then proceed to rent it out once again. You will then benefit from any income that you are able to secure and will only pay the landlord a fixed fee each and every month. A cost that you will be expected to cover would be maintenance that the property may require.
What does the landlord gain from this? As Russell and Dave mention sometimes the landlord just wants to sell and is tired of the day to day running of the property. In comes and motivated investors offering to take the property of their hands and give them and monthly fee, it’s a win-win.
A lease option, in theory, is pretty similar to a rent to rent. You will pay a monthly fee to the owner of the property. In which you can then rent it out to tenants. After your lease is up you will have the option to purchase the property for an agreed fee. In some cases, as Russell mentions a rent to rent can turn into a lease option if you know the market and ask the right questions.