My tenant wants to buy my rental. What should I consider?
A sale to your tenant is a normal sale with one advantage, a buyer who already knows the home, and a few points to settle in writing.
- Set the price from recent comparable sales, not from the rent.
- Confirm the tenant can get a loan or pay cash before you turn away other renters or buyers.
- Use a standard Florida sale contract, with an inspection period and a closing date, as with any buyer.
- At closing, the security deposit and any advance rent are accounted for under the contract and Fla. Stat. 83.49(7).
- What happens to the lease if the sale does not close, and any rent-to-own or lease-option arrangement, are questions for a Florida attorney. PBP does not draft those agreements.
This answer explains the general process in Florida. It is not legal or tax advice; for your situation, rely on a Florida attorney or CPA of your choice.
Primary law
AI assisted the research and drafting of this answer; a licensed broker reviewed and approved it before publication. How PBP uses AI.