Seeking Lease Option Advice

[Andy Lesko]

I have a SFH in Scottsdale that is just about break-even every month and am evaluating my exit strategy. I have GREAT tenants (husband, wife, one son) who have been there for 3 years. They have been on the fence about purchasing their own home for 2 years, and have approached me about buying my home, which I've said "Give me an offer!" They haven't followed up.

Would a lease option be a good win-win solution?  What are the going rates for a lease option fee for a $350k home in Scottsdale?  I figure I could save the 6% agent fees, which is a huge savings.

What else should I be thinking about?

[Jerome Hanson]

There is no "going rate". Everything will be up to your negotiation with the tenant. Your negotiation is this: pay me a fee to ensure I don't sell this home to someone else for a certain amount of time (12 months?). Otherwise I'm selling the house. The lease and the option are two separate contracts. The standing of the option contract is dependent on the good standing of the lease contract. If the lease terms are broken, so is the option contract and tenant loses the fee.

The only other thing for you to consider is: why pressure the tenant? Let them beg you to buy the house. you continue to collect rent and eventually the rent needs to increase. They sound like solid tenants.