How to Lease a New Home

Leasing a home differs from renting. If you lease a home you’ll have the option to purchase the property in the future. A lease is perfect for anyone who isn’t in a position to purchase a home. You can lock in a sale price and potentially save for a down payment. Before making the decision to lease a home, do your research and fully understand the process.

Things You'll Need

• Real estate classifieds
• Lease agreement
• Down payment
• Real estate attorney

Instructions

1. Convince the seller to consider a home lease. Most home sellers want to sell their property, get their equity and put the money towards a new home purchase. With a home lease, the seller doesn’t receive upfront cash. Read the real estate classifieds and look for lease-option properties, or propose the idea to a home seller.

2. State the benefits of a lease-option. Naturally, some home sellers are hesitant to consider a lease. You have to motivate them and sell the idea. In a slow housing market, a lease is a great way for sellers to find quick tenants. What’s more, they save money on settlement fees and Realtor fees.

3. Save money for the deposit. Once a home seller agrees to a lease-option, they’ll likely require an upfront deposit, which can equal a one month’s lease payment. Be prepared and have the money on-hand.

4. Write a lease agreement. Since leasing differs from traditional renting, a lease agreement is recommended. The agreement should highlight the lease period, the monthly payment and whether the seller will set money aside as a future down payment.

5. Have a real estate attorney review the contract before signing. Although these transactions don’t require an attorney, it doesn’t hurt to have a lawyer who specializes in real estate examine the document.