Home Buying in Ann Arbor>Question Details

mikegracey, Home Seller in Ann Arbor, MI

i want to rent condo than sell to owner should i deduct the rent they have paid when they buy

Asked by mikegracey, Ann Arbor, MI Sun May 26, 2013

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you only need to deduct part of it to apply to the purchase as agreed with the tenant.
0 votes Thank Flag Link Fri Nov 8, 2013
AsAFollowOnToKathy'sComments... YouShouldAlsoDocumentThe"GoingRate"ForTheLeasePrice($850InHerExample). TheLessee'sUnderwriterMayWantProofBeforeHe/SheWillAllowTheMoneyYouRefundToBeUsedForDownpayment.
0 votes Thank Flag Link Sun May 26, 2013
You are talking about a rent-to-own otherwise known as a lease option. Nothing is written in stone about the terms. You can apply a portion of their rent to the purchase price or you don't have to. Usually when I do a lease option, I do apply the initial option fee to the purchase. But I do not apply the rent to the purchase price unless they are paying an amount higher than the going rent for the area. For example, if the going rent is $850 but they are paying $1000, then I would apply the extra $150 to their purchase price and might agree to match it with an additional $150. Like I said, there are no set rules about rent-to-own. It is whatever you and the tenant agree to.

Kathy Persha, Assoc.Broker/Realtor/Investor
Keller Williams Realty
GRI, CDPE, SFR, CIAS
0 votes Thank Flag Link Sun May 26, 2013
You can deduct the rent that they have paid when you sell it to them if that is something you want to do but you don't have to. If you click on the link below it will take you to my Blog about Rent to Owns and how they work.



http://www.trulia.com/blog/alainpicard/2012/09/how_does_a_re…
0 votes Thank Flag Link Sun May 26, 2013
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