Lease to purchase option structure

[Ismael Ayala Jr.]

We're looking to convert our current home into a rental with the option to purchase.

Would anyone happen to have any thoughts, tips, recommendations on structuring a lease option? I've heard of a seller acknowledgement form, having a limited power of attorney, nonrefundable deposit, etc. I even heard of a landlord being sued and losing and having to back pay all the rent payments. 

I figured I'd speak to a real estate lawyer recommended by a investor friendly title company.  I have one in mind, but before I go and speak to them, any info from knowledgeable professionals/landlords is welcomed. Thx.

In the meantime, I'll scour posts for any info about this topic on BiggerPockets.

[Joe Villeneuve]

Quote from @Ismael Ayala Jr.:

We're looking to convert our current home into a rental with the option to purchase.

Would anyone happen to have any thoughts, tips, recommendations on structuring a lease option? I've heard of a seller acknowledgement form, having a limited power of attorney, nonrefundable deposit, etc. I even heard of a landlord being sued and losing and having to back pay all the rent payments. 

I figured I'd speak to a real estate lawyer recommended by a investor friendly title company.  I have one in mind, but before I go and speak to them, any info from knowledgeable professionals/landlords is welcomed. Thx.

In the meantime, I'll scour posts for any info about this topic on BiggerPockets.

Rule number 1:  The lease contract and the Option contract, or two separate contracts, and should NEVE be connected in any way. 
Rule number 2:  The Option Consideration is NOT a deposit on the purchase, it's the cost of the Option Contract, and it should NOT be given as a credit toward the purchase of the property.  If the option is not exercised the option consideration is NOT returned to the tenant.  The tenant got what they paid for,...the option contract.