The exit strategy you choose when selling your investment property can dramatically impact your overall returns. One particularly profitable alternative to a traditional sale is the lease option approach. This strategy allows you to earn enhanced returns on your real estate investment while providing flexibility to both parties. At the conclusion of the agreement, typically spanning one to three years, potential buyers can either purchase the home or walk away—and you retain the initial option fee collected upfront as a down payment, regardless of their decision.
Similar to a standard rental arrangement, you’ll be leasing your property. However, these particular tenants have significantly more invested than typical renters, as they’re essentially test-driving homeownership. These potential buyers willingly pay premium rates for the opportunity to experience the homeowner lifestyle while addressing credit issues or building their down payment savings. With qualified tenants and a carefully structured lease option agreement, many Gulf Coast investors come to value this arrangement’s advantages and begin specifically targeting properties for lease option strategies. Continue reading as we explore how using a lease option to sell your rental property in Florida can provide you with a transparent, straightforward solution.
Asking Price
When you use a lease option to sell your house in Florida, you remain in control of the transaction. You set the sales price for the property upfront, typically above current market value to account for anticipated appreciation over the contract term. While you assume the risk of unexpected market surges, the tenant bears the risk if property values decline – creating a balanced arrangement that protects your investment interests as a Gulf Coast property owner.
Option Fee
Using a lease option to sell your house in Florida provides immediate financial benefits. You’ll collect a non-refundable option fee typically ranging from one to five percent of the sales price, though fees up to twenty percent aren’t uncommon. With the national median listing price for active listings hovering around $450,000 as of May 2022, a 5 percent option fee would generate $22,500 upfront. This substantial sum would later apply toward the purchase price if the tenant exercises their option – giving you cash now and potential full-price sale later.
Tenants Maintain Your Property
When using a lease option to sell your house in Florida, you’ll maintain title ownership and responsibility for taxes and insurance, but virtually everything else becomes the tenant’s responsibility. This arrangement, which aligns with Panhandle Real Estate Investments’ commitment to straightforward solutions, shifts the financial burdens of home maintenance and repairs to the tenant – reducing your ongoing property management headaches while preserving your ownership position.
Above Market Rent
You’ll enjoy above-average rental income when using a lease option to sell your house in Florida. This additional amount, known as the rent premium, accumulates over the contract term and is eventually deducted from the sales price if the buyer exercises their purchase option. However, if the tenant doesn’t complete the purchase, these premium payments become additional profit – creating a win-win scenario that protects Florida homeowners while providing flexible options for potential buyers.
Talk to one of our experienced, family-owned team members at Panhandle Real Estate Investments today about your property, with no obligation. At Panhandle Real Estate Investments, we’re committed to transparency and fair dealing with our Bay County neighbors – we want you to know you made the best decision and feel confident working with us long after closing. That’s why we’ll compare the numbers between a traditional listing, the lease option method, and even make you an offer to buy your property directly, as-is, for cash. At Panhandle Real Estate Investments, we provide detailed calculations so you can make an informed choice about the best way to sell your Florida house without stress or complications.
Ready to discover the win-win advantages of using a lease option to sell your house in Florida? As trusted local investors who genuinely care about people, not just properties, we’re here to help with honest offers and real solutions. Call Panhandle Real Estate Investments at (850) 778-2212.
About Panhandle Real Estate Investments
I’m Peyton Saluto, founder of Panhandle Real Estate Investments. For over seven years, I’ve helped homeowners across the Florida Panhandle find fair and stress-free ways to sell their homes—no repairs, no commissions, and no pressure. My goal is always to put people first and make a real difference in our communities by restoring distressed properties and rebuilding neighborhoods. If you’re thinking about selling, reach out for a no-obligation cash offer. I’d love the opportunity to help you find the best path forward.