Issues to address with lease-to-own

[Ryan Rich]

Hey BP community!  Appreciate any advice as this issue just came up.  My group has an underperforming vacation rental that we have been trying to sell.  We found someone who is willing to rent the property for the rest of the calendar year on a month-to-month basis and allow us to continue showing the property with notice.  At the conclusion of the discussion, they inquired about a lease-to-own option.  Having never gone this route before, I am trying to learn on the fly.  How is this typically structured?  What are the pitfalls to avoid as a seller?  Is there a good resource that lays this out in a concise manner?  Thanks in advance!

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Quote from @Ryan Rich:

Hey BP community!  Appreciate any advice as this issue just came up.  My group has an underperforming vacation rental that we have been trying to sell.  We found someone who is willing to rent the property for the rest of the calendar year on a month-to-month basis and allow us to continue showing the property with notice.  At the conclusion of the discussion, they inquired about a lease-to-own option.  Having never gone this route before, I am trying to learn on the fly.  How is this typically structured?  What are the pitfalls to avoid as a seller?  Is there a good resource that lays this out in a concise manner?  Thanks in advance!

Well, I'd call it owner financing. You become the bank. The two of you agree on a price. You determine the amount down, the interest rate, the term. You have to have a written agreement that explains the terms and what happens if they fail to meet those terms. It's drawn up by an attorney.