Hello,
I have a condo where the current tenant is interested in a rent-to-own option (buy in one year).
He has been there over 2 years and has been a good tenant, and I feel that he is reliable.
I am drafting an agreement for the RTO option agreement, and have some questions.
Seeking advice and guidance.
(1) The price: How do I decide the price? Do I use the current market price? Do I add interest on top of fair-market price?
(2) term: 1 year
(3) Sign-up option fee: I am thinking $2k - $3k sign-up fee.
(4) monthly option fee: about $1k monthly
(5) all option fees are non-refundable
(6) cancellation:
All advice and suggestions are very appreciated.
Thank you in advance
I have a condo where the current tenant is interested in a rent-to-own option (buy in one year).
He has been there over 2 years and has been a good tenant, and I feel that he is reliable.
I am drafting an agreement for the RTO option agreement, and have some questions.
Seeking advice and guidance.
(1) The price: How do I decide the price? Do I use the current market price? Do I add interest on top of fair-market price?
(2) term: 1 year
(3) Sign-up option fee: I am thinking $2k - $3k sign-up fee.
(4) monthly option fee: about $1k monthly
(5) all option fees are non-refundable
(6) cancellation:
- The tenant can cancel anytime, but option fees are non-refundable. If I have to cancel, what could be a conventional penalty?
- Or, make it a bound contract, so no way out on both parties.
All advice and suggestions are very appreciated.
Thank you in advance