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Should You Allow Buyer To Rent During Closing?
It's not uncommon for an investor to sell a house and have the buyer request the right to rent and occupy the property while the closing is being completed. You're a bad guy if you refuse and often in hot water of you agree. Here are the potential problems with renting before closing: 1. Buyer is in the home for two months and then the potential lender decides the buyer can't qualify for the mortgage loan. Now that's bad news! 2. Buyer is in the home for two months... gets a bad case of buyer's remorse and wants out of the deal. Now that's bad news! 3. Buyer is in the home for two months and comes to the closing table with a long list of needed repairs he has discovered during residency. Now that's bad news! 4. Buyer is in the home for two months during which time he does serious damage to the property and then disappears. Now that's bad news! Is there any good news? Well, you are getting rent money for those two or so months. Let's check the score card: Bad News = 4Good News = 1 I would say that the investor comes out on the short end of that game. Let's agree that the only time you rent during closing is if you are in dire need of that rental income. If you must rent then you must carefully prepare a lease agreement. No handshake deals allowed! If the buyer/renter refuses to close the deal for any reason, the only way you can get them out of the property is if you have a rental agreement that gives you the right to evict. It must also be a short term lease, so there is no misunderstanding about the buyer/renter remaining in the property if the deal goes bad. In the purchase agreement you must spell out exactly, in a dollar amount, what repairs or improvements you will pay for. The agreement should indicate the buyer has had an inspection period and is buying subject to your limits on repairs and costs... now and in the future. If legitimate defects are found in the property during the rental period you can negotiate a solution. You must collect sufficient security deposit to cover rent and potential damage the renter/buyer might inflict upon the property. Look, if for some reason you feel you must accommodate the buyer during the closing period? pay for a motel room. Chances are it will be far cheaper in the long rund. Mark Walters is an investor-entrepreneur helping other investors from his Web pages at http://www.Lease-Option-Sub2.com
MORE RESOURCES: CIP Real Estate Secures $300M in Growth Capital GlobeSt.com Real estate agents reveal the hottest markets for the next 10 years Business Insider Private equity bets on health care real estate Fox Business Real estate firm hands out $10M in holiday bonuses The Columbian November 2019 Real Estate Transactions Cape Cod Today Decreased inventory for buyers in local real estate market Kirkland Reporter Boston real estate tax gets closer to becoming reality Boston Herald Black Woman Real Estate Developer Felt Unwelcome In the Community So She Built Her Own Black Enterprise Restaurants struggle to find good real estate Restaurant Business Online EU GDPR Violation: German Residential Real Estate Company Fined The National Law Review Real Estate Transactions: Dec. 13, 2019 The Recorder Ask a real estate pro: Do I have to take support animal off property when she’s just gotta go? Sun Sentinel Los Angeles Times printing plant sold to Atlas Capital Group Los Angeles Times Lachlan Murdoch buys 'Beverly Hillbillies' house for record price Los Angeles Times Recent Commercial Real Estate Transactions The New York Times Real estate’s nemesis may now be its best hope in Albany The Real Deal Seattle DJC.com local business news and data - Real Estate - Kamiak now Kamiak Real Estate Partners Seattle Daily Journal of Commerce 5 Ways To Earn Money In Real Estate Without A License Black Enterprise WHO'S NEWS: HelmsleySpear, LLC, has announced the appointment Afa J. Zada as Real Estate Agent and Licensed Salesperson. Real Estate Weekly Chuck Wimmer joins Property West real estate sales team The Havre Daily News Lovesac brings on new VP of real estate Furniture Today How San Jose plans to spend funds raised by its proposed real estate property tax - The Mercury News Martha's Vineyard News | Recent Real Estate Transactions: Week Ending Dec. 6 The Vineyard Gazette - Martha's Vineyard News Long and Foster Real Estate names top agents CapeGazette.com Rochester lands on Realtor.com's top real estate markets for 2020 Rochester Business Journal City may partner with real estate company to help sell old Syracuse Developmental Center CNYcentral.com Real estate pro shares insights on West Ridge Mall foreclosure auction The Topeka Capital-Journal CA 'Beverly Hillbillies' mansion sold in $150 million historic real estate deal FOX 10 News Phoenix MFA signs 100000 s/f lease with Akerman Real Estate Weekly Related, Enel X install cityʼs largest battery storage system Real Estate Weekly The latest Coles County real estate transactions | Local Journal Gazette and Times-Courier The Silver Tsunami in Real Estate | Take Me Home | Bend The Source Weekly Real Estate Market Trends Flathead Beacon Real Estate Insider: Dino's, M-Brew restaurants in Ferndale for sale again for $3.45 million Crain's Detroit Business Real estate firm reimburses state $68,000 after overcharging the Department of Corrections for years Milwaukee Journal Sentinel Onyx unveils new-look Gateway Real Estate Weekly Belize Real Estate Scam Defendant Denied Joint Defense Privilege Bloomberg Big Law Business These Realtors didn’t like their options for finding clients. So they built an app. Raleigh News & Observer Fighting for height: Limits hamper real estate development WPXI Pittsburgh Going Up? For These Real-Estate Agents, Not So Much The Wall Street Journal REAL ESTATE TRANSACTIONS: Dec. 2 – 6 Martha's Vineyard Times Two swindlers get probation for laundering proceeds of West Africa-based real estate scheme Pittsburgh Post-Gazette Know In Which Real Estate Market to Invest U.S. News & World Report In a Sizzling Real Estate Market, City-Owned Storefronts Have Stood Vacant for Nearly Two Years Willamette Week Las Vegas, Dallas and Fort Collins, Colorado, Poised to Be Real Estate Hotbeds in Coming Years Mansion Global The hatch has officially closed on Tucson's hottest real estate listing Arizona Daily Star What Is Passive Income in Real Estate? Motley Fool Luzerne County Council Approves 2020 Budget with Real Estate Tax Hike WNEP Scranton/Wilkes-Barre |
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