The option is the contract that allows a buyer to purchase a home after payments or in other words it is the buyers right to purchase a home at price determined before.
Most option now are about 2 years with chances to renew. During this renewal time the price may be risen or continued as it is.
The option is also a contract that binds you to sell the property at the predetermined price.
Most, about 3/4th of buyers, do not purchase from the option. This is great for you to re-lease option the property and make the benefits of the lease option again.
When dealing with the option you may deal with bad renters and because of this you can revoke the option to purchase if they are late paying the lease payment. Once the option is revoked you can just evict them from the property.
You can also state that if the renter / buyer does not fix the property up to a certain amount (usually around $700 -$1000) that they lose the option to purchase. Landlords fix properties not people selling their home through lease option.
These ideas might help you later in working with a possible bad renting tenant / buyer.
If you would like the chance to work with me or one of my fellow real estate investor coaches and our advanced training programs, give us a call anytime to see if Dean's Real Estate Success Academy and our customized curriculum is a fit for you. Call us at 1-877-219-1474 ext. 125