Tenant insurance is generally required for the tenant`s personal property. Tenant insurance protects for loss of value of property and furniture in the house. In addition, it is important that the owner also has homeowner`s insurance if something happens during the rental period that could affect the value of the property, such as fire or water damage. It is important to calculate the exact amount to be paid to the landlord at the end of the leasing option. Keep in mind that the owner removes the home from the market and forgoes any benefit from the market value of the home by taking the rental option. The owner will want to be properly compensated because he cannot sell the house to another person who was willing to buy it. Excess credits can also be applied for the eventual purchase of the property or on the down payment of a mortgage (WARNING, the buyer and seller can accept what they want, but if the buyer goes for permanent financing, the bank has rules that can be applied to the down payment or purchase. As a general rule, banks only allow an amount that exceeds the market rent is taken into account for a down payment.) In this case, the leasing option works as an automatic savings plan for the tenant. This down payment is levied as part of the „option tax“; in the leasing option arena, it is a tax for the right to purchase the property. An option agreement grants the owner of the tenant option the right to purchase the property at an agreed price during the term of the tenancy or any other fixed term, also known as an „option period,“ in exchange for a tax paid to the seller, called an „option tax.“ If the option indicates that the lease changes to the current lease, you can ask the landlord in writing to tell you what the new rent will be. You should send this request to the owner before the time begins to exercise the option, usually nine to six months before the end of the lease. 2. The parties agree on a purchase price.

It may be decided that the price will be the value value assessed at the time of exercise of the option. As a general rule, however, the purchase price is agreed at the beginning of the option. A fact sheet that outlines the three ways to end a commercial lease in Australia: abandon your lease, assign or sublet. If there is no option in a commercial lease, it means that the tenant does not have the automatic right to renew the lease.

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