A: Typically a lease purchase contract has four major components:  the lease term, the monthly lease payments, the option consideration, and the purchase price.  The lease term is the length of the contract and is usually between 1 and 3 years.  Sometimes there is an option to extend the contract upon the owner's approval.  The lease payments are the monthly payments paid by the tenant/buyer.  Often times our properties have rent credits that go towards the purchase price, which means that our tenant/buyers are creating equity in the property.  Option consideration is sort of like a 'down payment' which is credited towards the purchase of the home.  Lastly, the purchase price is the pre-determined selling price which the tenant/buyer can purchase the home for at the end, or during, the term of the lease.