I am wanting to put together a Lease Option Agreement on my property that has 2 homes on it – a main house and a cottage. The potential buyer will live in the main house, and the cottage can be rented out – Who collects the rent on the cottage until the option is exercised? The Landlord/Seller or the Lessee/Potential Buyer?
3 thoughts on “Who typically collects the rent in a Lease/Option agreement?”
Leave a Reply
You must be logged in to post a comment.
The person you are dealing with would lease the entire property with the option to buy and sublet the cottage. They would collect the rent on the cottage. The cottage rental is a completely separate agreement from the lease option that you will have with the 1st person. You would have nothing to do with it.
You CANNOT collect rent on the same property twice!! You could ONLY collect rent on the cottage and the house if you rent them out seperately.
The Landlord/Seller collects the rent. Because, until the Leasee purchases the home from you, you are still paying the mortgage.
Seller
Your lease option person is basically a tenant until they retain their own financing and buy the place.