Should I offer lease option or contract for deed?

[Staley Wessel]

We bought a small house for cash a few years ago. Then I learned that my husband is not all that excited about being a landlord and fixing up the house was not a priority. So it sat empty and we mowed the lawn and paid the taxes. Last year I decided to let a friend, who is a contractor, lease the house and sublet it to a young man who worked for him. The lease terms did not involve money - just upkeep and improvements (still waiting on those improvements). Well, the "lease" with my friend is up next month, the young couple is still there and had expressed interest in buying. I had previously said I did not want to finance and since they cannot get financed traditionally they looked at other options like buying a trailer home. I assume that did not work out since they are still in the house. I don't want to kick them out but I don't want them to live there as squatters either. Bearing in mind my husband's lack of desire to deal with landlord type duties I am thinking of offering them the house as a lease option OR a contract for deed. If it was as a lease option I would want the lease to be an as is type situation. The house needs work and they have been living in it a year already. I am open to opinions on my options.