Structuring a rent to own deal

2 Replies

So I have a townhouse that is getting ready to go vacant and the next tenants want to maybe do a rent to own for this property. My wife and I are wanting to sell this property within the next year anyways to reinvest that money into another deal where there is no HOA fee.How do rent to owns actually work if we wanted to do this for our next tenants?

A lease with option to purchase. RTO is old scammy sounding verbiage.

Standard lease with a separate but contingent on performance of the lease exclusive right to buy at an agreed upon price for a set amount of time.  The exclusive option costs money called option consideration. Mine are usually 3%.  Have the option notarized.

 My purchase prices usually rise with the length of the option. $x if exercised within 12 months, $x + 3% if 13-18 months, etc. Or extension consideration. 

 Lots of threads on LOs here on BP!