What's a typical option fee?

1–5% of the purchase price is common — non-refundable, but credited toward the purchase if the tenant-buyer closes.

Investing strategy

Lease Option Investing

Rent now, buy later — lease options explained for investors.

What is a lease option?

A lease option combines a rental lease with an option to purchase the property at a pre-set price within a set window. The tenant-buyer pays option consideration upfront and often above-market rent, with a portion credited toward the purchase.

Investor benefits

Premium rent, non-refundable option fees, motivated tenant-buyers (who tend to take better care of the property), and a likely future sale.

Common pitfalls

Most tenant-buyers don't end up exercising the option. Build your model assuming you won't sell and the option fee + rent premium will be your return.

Run Lease Option deals in FlipOS

FlipOS includes a deal analyzer with lease option built in, plus project management, CRM, and budgets for after the deal closes.

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Frequently asked questions

What's a typical option fee?: 1–5% of the purchase price is common — non-refundable, but credited toward the purchase if the tenant-buyer closes.