What is the purpose of an option clause in a lease agreement?

The purpose of an option clause in a lease agreement is to provide the tenant with specific rights related to the future use of the property, such as the ability to purchase the rental property or extend the lease term at a predetermined price. This clause offers flexibility and can be beneficial for both the tenant and landlord. For a tenant, it creates an opportunity to secure favorable terms for extending occupancy or acquiring ownership without having to negotiate these terms later. For the landlord, it can enhance the appeal of the rental property, potentially leading to longer tenant occupancy or a guaranteed sale down the line.

The other choices describe elements related to a lease but do not capture the primary function of an option clause. Penalties for late rent payments focus on financial consequences, while a description of the property addresses its physical aspects. The requirement for tenants to maintain the yard and exterior relates to the responsibilities of the tenant rather than any options regarding lease duration or property purchase.