$907/mo for 48 months , $7423 due at signing Security deposit waived. Excludes taxes and license fees.

This is a current ad to lease an F150 Lariat.

I wonder if we should consider structuring our leases in similar fashion. When I get people offering to prepay, it is a bad sign, but buy in IS good. People write about the value in long term tenants saving turnover costs….well, if they had paid $7423 at signing, they wouldn’t be so likely to move. Perhaps, more likely to abide by all of the lease terms.

What say you?

Many of the places I've had and sold (mostly class "C" places are swarmed with buyers who want rent to own arrangements - because they don't have money or they can't get a loan.

When I sell a place that I suspect the buyer might not perform, I just do a lease with an option. I get an option consideration which is NOT applied to the purchase price and also NO PART of the lease payment is applied to the purchase price. I keep them completely separate because I don't want some tenant loving judge saying they have an interest in the place and that I must now foreclose. Also, the option period is only 6 months and can be extended 6 more months at my OK IF and only IF they pay on time without fail and don't make ANY trouble.

Got to "keep em' separated" (thanks Offspring).

Sisco,

In over 1000 leases I have taken non-refundable money up front - no deposits.

Currently it's a Rent Discount Program Fee the same amount as a deposit would have been. I explain it like getting a Costco membership.

Years back I was getting up to $5000 each lease.

Out of those 1000 only 2 actually got a loan and bought the home. 9998 walked away. (do that math!)

Side note: those leasees also handle all minor maintenance other than roof and HVAC!

With proper management deposits and their problems are not necessary.

Times have changed. People want different things than just a few years ago. LLs MUST respond to want their customers truly want. No rent increases for 12 months is HIGH on their list.

BRAD