QUOTE (RussellWestcott @ Feb 23 2010, 05:15 PM) Mark there is a great template on the members only critical forms section.
With very little modification you can change to fit your needs.
Written by a professional copywriter
location of file
Download section
Downloads > Critical Forms > Tenant & Landlording Forms > Sell Property to a Tenant Letter.pdf
Click here for the file
PS.. Congratulations on your actions!
PPS... Regarding your strategy ... it might be prudent to have a conversation with your accountant and get their opinion of your potential future tax liability. You may be changing the use of your properties from long term buy and hold (Capital Gains) and you are now creating inventory (Business income)... not saying what you are doing is right or wrong, its always a good idea to be informed be prepared, and you may have to establish property values of the units when you make the change of use.
Thanks Russell
Good tax advice that I will discuss with my accountant.
There is also some good content within the template letter. I may "tone down the marketing" a little and try to personalize a little more.
I would like to put specific numbers into the letter to tenants as well.
Can a person offer "retroactive" credits towards long term tenants to help reduce their amount of deposit?
For example.... something like this:
Dear: xxxx
I wanted to thank you for the past 3 years of support as a valued tenant. In doing so, I also wanted to offer you a unique opportunity that could help you purchase the home you are currently living in....(then talk about rent to own)
We are willing to offer you $100/month credit for each of the months that you have been under our tenancy agreement. That means you have already built up $3,600 in equity credits which significantly reduces the deposit you need to us and also helps you build for the bank required down payment when the lease agreement comes to term. (summary version)
The underlined part is obviously the area of concern. Can I do this? If not, is there another way of structuring it to show that they have built some equity over the last several years of tenancy other than a flat price reduction?
Any feedback is much appreciated...
