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3. Maintenance: Having the tenant pay for maintenance is a great plan (so long as you have confidence they’ll keep the place up). I’ve never views something like a refrigerator as maintenance, but it could be if you write the contract that way. I roof is a closer call, although you’d eat up the $500 fast. One way to look at it is that capital improvements are not maintenance. But again, the key is to be clear in your agreement.
We’ve entered into several lease-to-own agreements with tenants, although we’ve only sold one of the homes to a tenant (more about that in a minute). This experience has taught me two things: (1) tenants make major mistakes when entering into a lease purchase agreement, and (2) some landlords take advantage of tenants who don’t understand how to approach a contract for a rent-to-own house.
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