Selling on a Rent-to-Own. Early Occupancy?

[David Augustyn]

I have successfully bought, rehabbed, and settled on on contract details of my first property.

We plan to lease the property for 1 year or less and close when the buyer can get financing. We have analyzed the risk and evaluated how the sale would fall under tax rates etc, but there a couple points of which I am unsure.

So the question to all is,

How have you handled short term leases in the past?

My landlord/realtor friend suggested completing the WI "Residential offer to purchase" form from the state and just use an early occupancy form for the time that they occupy the house until closing.

One of the details in our agreement, is that there is a $5000 fee which is non-refundable if close doesn't occur, but is refundable as a credit at closing, if close does occur. Can I put this into the early occupancy agreement? Should it be written like an Option Fee?

How has everybody used early occupancy in the past? How have you done your short term leases?

Thanks