Post Settlement Occupancy Questions

[Curtis N.]

Will close on a property end of the month and will be allowing the seller to rent-back for 60 days at my PITI. We have the standard post-settlement occupancy agreement in our ratified contract. Here are my questions. I'm assuming upon walkthough I should treat it like a normal rental walkthough and document everything with pictures and have them sign off on condition? Do we need to have them sign an actual lease? I asked my agent about this and he said he's never seen it done. He said normally the PSOA is enough. The PSOA does not provide a daily rate if they stay past 60 days as I didn't even want to present that as an option. But I'm wondering if I should name one and make it more than the standard 2x rent to really show them I mean business. Like 10x rent. But they may not sign off on that. Not sure what to do here. The PSOA states "Seller will deliver the Property, including existing appliances, heating, cooling, plumbing, electrical systems and equipment, smoke and heat detectors, and landscaping and lawn, in substantially the same physical condition as on the Settlement Date and broom clean with all trash and debris removed." So that appears to me like I am not responsible for those items while they're living there like I would be for a normal rental property. Is that correct? We are escrowing all rent plus 1 month rent for security deposit at closing. The sellers have lived there for 10 years and have taken immaculate care of it so we're not really concerned about anything but I just want to make sure we know what's going on. I normally wouldn't opt to do a rent back but they needed it and in return they made a significant price drop. Thanks in advance!