When a Tenant Expresses Interest In Buying . . .

If I have other plans, bigger and better plans, and, in keeping the house, I will not achieve those plans, then, if the tenant comes to me with a reasonable offer, I may just take it, I really have no hang up regarding who I sell something to. Once you want it, and you have the right amount of money, coupled with the fact that I do not have a problem with you, what you need, that I have, may very well be sold to you!

 

If you're already renting the property, and have other investments, then it's not a raw deal to at least consider. A reliable tenant is probably the best candidate for buying your property you'll ever meet - they make their payments, take care of the property, seem to like it or they wouldn't offer to purchase it.

On the other hand, it might be more beneficial to work out a long term lease with easily accessible options for purchase later down the line - e.g., ten years lease with option to purchase the home at the end of the lease at whatever price is worked out.

 

Well, my family was in that kind of situation before. We used to have a rental house just beside the house where we live in. For years we have been renting out the property to families for long term basis. Our last tenant was a relative of my dad and after more than a year of renting, he offered to buy the house and the lot where it stood. My parents thought about it for some time until they finally decided to take the offer since the buyer is a relative and we could use the company of a good neighbor such as him. Now, he has his own family and they're still living there with a few renovations done to make the house bigger.

 

First off, the landlord should have the intent to sell the property, say a house and lot. When the tenant expresses his desire to buy the said property, the landlord normally jacks up the price a bit. That is common here. So what tenants do is to wait and see, let other potential buyers come to do the haggling. And when there is a near transaction to happen, that's the time the tenant comes in with his counter offer. And since the landlord already knows the tenant, i.e. if the tenant is in good standing, then he may get the deal.