Moringa Industries

There are many advantages from the seller's point of view as well. The ability to command a higher rental payment may turn a negative monthly cash flow into a positive one. There is also the down payment made at the time of contract. A tenant who intends to purchase the property will usually take better care of the house. There may be a tax benefit to the seller for delaying the sale of the house. A higher price can be set for the house. If the buyer walks away, the seller can pocket the down payment and the additional rent and repeat the process with a new tenant.

The primary disadvantages are that the seller has to wait to receive the money from the sale of the property and any appreciation in excess of the pre-set selling price belongs to the buyer. Despite the drawbacks, a lease-option program can be a great way to sell a house.