Tenant wants to pay one year rental and first right of refusal

[Aaron Xie]

I recently received an application from a potential tenant, who wants the following:

(1) Rent for three years (maximum allowed by my state) and pay the first year up front

(2) The first right of refusal to purchase the property should I decide to sell

(3) Ppermission at their sole cost and expense to repair drywall, paint, replace carpet, seal deck and install a hot tub

This the first time I have such a potential tenant. I think this is not bad, but would like to get more opinions here as to any potential risks or issues. Thanks in advance. 

[Brian Mathews]

You're being setup for something.  No, no and no.  Find another tenant.  If you decide to hold the property and they've done a bunch of stuff to the house, they will hang you out to dry.  You'll have hell getting them out and likely will end up hiring a lawyer