Lease to buy

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Depending upon your agreement, you might also find yourself paying for minor repairs on the dwelling. In most cases, of course, the landlord foots the bill for all of the maintenance . . . but you may be asked to contribute toward the upkeep of the house.

WHERE TO LOOK

You can begin searching for property in your own back yard . . . literally! According to statisticians, the average landlord holds onto a house for only three years before selling it . . . so it stands to reason that if you were to offer a package of sale at an acceptable price and terms, your own rental home's proprietor might well at least be willing to listen to the proposal. And if that doesn't spark a deal, an offer to pay a higher rent during the lease period might help you capture his or her attention.

Of course, should that angle fail, you can try responding to ads in the real estate section of the local paper (you could even place an ad requesting a lease with the option to buy). Or, if there's a particular not-for-sale property that you'd like to own, find out (from the county records) who owns the spread and make an offer directly to that person. Be aware that many sellers won't be interested in the lease option (and that some real estate agents might not want to handle this type of transaction) . . but even if you're refused by the first few homeowners or realtors you approach, keep on trying. Find out why your offer isn't accepted with enthusiasm, and perhaps make a more favorable proposal. Locating a lease-to-buy property can take quite a little time, but it's well worth the effort in the long run.

DRAWING UP THE AGREEMENT: THE LEASE . . .

As you've no doubt figured out by now, there are two parts to the typical lease with option to buy: the lease itself and the contract of sale. When preparing the former, you'll have to come to an agreement concerning the length of the lease and the amount of rent that you'll be paying. Of course, as the buyer, it's to your advantage to negotiate a fairly long term. Such an arrangement could allow you to apply several years' rent (or a portion of it) toward the down payment . . . and substantially reduce the amount of cash needed when you exercise the purchase option. (Regardless of the length of the lease, however, you will be free to buy the property before the term is up . . . should your finances improve.)

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