Lease Purchase FAQ

Yes—occasionally. Even though Lease Purchase tenants agree to handle maintenance, some allow issues to go unresolved, which can lead to damage from neglect.

Rent Robin conducts regular property visits and inspections to monitor condition and address issues early.

Yes. Offering a Lease Purchase exposes your property to a much larger segment of the market—buyers who want to own but are not yet mortgage-ready.

Lease Purchase often:

• Solves vacancy issues faster

• Improves cash flow

• Reaches buyers you cannot access through a traditional “For Sale” listing

Occasionally, tenants negotiate for a portion of rent to be credited toward their down payment. This can:

• Help them build funds

• Improve their chances of closing

Rent credit only affects you at closing. Like earnest money, it appears as a credit for money already paid. If the tenant fails to close, they receive nothing back.

Rent credit is never automatic and must be approved by the owner.

Rent Robin has had strong success closing the Lease Purchases we structure. Experience matters.

We are careful not to create false hope by putting together deals that have little chance of closing. While no program closes 100% of the time—because people make choices outside anyone’s control—the owner benefits either way.

If the tenant does not close, you still gain:

• A long-term tenant

• Reduced vacancy

• Rent paid consistently

• Earnest money retained

Lease Purchase fees are structured similarly to traditional leasing and selling:

• Procurement Fee: For placing the tenant

• Monthly Management Fee: For ongoing management

• Sales Commission: Paid at closing, just like a traditional sale

Rent Robin manages Lease Purchases the same way we manage other properties, except that maintenance responsibility shifts to the tenant.

As licensed brokers, we handle both sides professionally—earning commissions as you realize your equity.

A significant percentage of tenants do not close for various reasons.

We:

• Maintain regular contact with the tenant

• Discuss financing and closing readiness

• Often request extensions when progress is being made

You remain in control of extension decisions.

If the tenant moves out:

• Their deposit is forfeited

• They must leave the property in good condition

• A standard move-out inspection is completed

In many cases, properties are returned in better condition than at move-in. Occasionally, tenants make improvements that remain with the home and increase its value.

From an owner’s perspective, a properly structured Lease Purchase offers no downside:

• If they close, you sell the home

• If they don’t, you’ve had a long-term tenant, steady income, and reduced vacancy

If you cannot deliver clear title or refuse to close, you are in default of the purchase agreement.

Most tenants will allow reasonable time to resolve issues. However, if you fail to deliver what you promised, the tenant will likely pursue their deposit—and often succeed.

Do not enter a Lease Purchase if you cannot provide good title.

The owner must maintain a landlord insurance policy during the lease period. This covers the structure and liability.

Renter’s insurance may be recommended but cannot be required.

If HOA dues are mandatory, the owner should pay them.

Unpaid dues can result in liens and legal fees. That responsibility should not be transferred to the tenant until they officially become the owner.

Signing contracts is only the beginning.

Lease Purchase tenants are still “homeowners in training.” Despite having more money at stake, issues still occur:

• Late or missed rent

• Returned checks

• Unauthorized pets

• Deferred maintenance

Ongoing education, oversight, and enforcement are required. Attentive management protects your property and keeps the transaction moving toward a successful closing.