We get a lot of calls for clients who are currently looking to rent a home but in the near future be able to purchase a property. They often ask us if the current owner would consider a lease option that would allow them to lease the home and then purchase it at a later date. This can be a tricky transaction and often should be negotiated by a licensed California real estate agent who has done this before. The basic concept is to find a rental property that you like and ask the owner if they are open to selling it. If they say yes then you have the potential to set up a lease option. Here are the points you want to consider and negotiate.
First, figure out the current value of the home. This will be important to establish a fair market value price as this number will be used when you decide to purchase the home. A lot of times owners will have their home up for sale and for lease which makes it easier to figure out what price the owner is wanting. If it's not on the market then have a local real estate agent do a comprehensive market analysis of the property to figure out the current value. Second, you will need to figure out how much of the monthly rent amount you will want to go towards the down payment of the home. This will accumulate each month and used towards the purchase of the home. Often times the rental price is paid at a slightly higher than market value to accommodate this feature. If the rental price is $4,500 a month then you may want to consider offering $5,000 a month and then getting $2,500 a month towards the down payment of the property. If you decide not to buy the home the owner still gets to keep all of this money. It's one of the trade offs for doing a lease option deal.
Some owners will also want you to deposit and non-refundable amount for the consideration of doing a lease option. I've seen this amount around $5,000 to $10,000 but can really vary depending on the value of the property. This is not a mandatory thing so if you can negotiate this out it will be in your favor. We have gathered some of the current rental listings that have indicated they are also open to selling. This is a good first step in approaching the seller to do a lease option. These currently can be found in various single family neighborhoods like Ritz Cove, Estates at Monarch Beach, Villas at Monarch Beach as well as condo communities like Niguel Beach Terrace, Tennis Villas and Lantern Bay Villas. If you need assistance in setting this up please contact any of our skilled rental agents at 949-606-4114.