What is a lease option?

A lease option is a form of real estate deal that enables tenants to rent a property with an option to buy it at some point in the future. It is a popular way for people to rent properties in New York, as it gives tenants the opportunity to try out the property before committing to buy it. Under a lease option, renters pay a rental fee each month, and a portion of this goes towards a down payment on the home at the end of the term. At the end of the term, the tenant has the option to purchase the property at a predetermined price. If the tenant decides not to buy the property, then the landlord keeps the payments and the tenant moves out. Lease options are beneficial for both landlords and tenants. For landlords, they receive rental income from the tenant and have the assurance that the tenant will eventually purchase the property. This also allows landlords to increase the value of the property over the term of the lease by making necessary repairs and upgrades. For tenants, a lease option allows them to rent a property without making a large down payment and gives them the chance to test out a property before committing to a purchase. Lease options are a great way for people to rent in New York, as the arrangement offers flexibility and security for both landlords and tenants.

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