What happens if the house is damaged?
The occupant is a tenant buyer, meaning that they intend to buy the home after the Lease to Own term, and thus will likely treat it like their own. Assuming they follow through with buying it, it doesn’t matter to you if they damage the house. If, however, they damage it and do not purchase the home, they lose their Initial Lease Option Deposit they paid upfront (minimum 3% of their purchase price), along with all other monthly payments. The risk has been significantly reduced by both the type of program we have and the amount of “skin in the game” the tenant buyer has; a regular landlord has neither of these advantages.
