How to DO a "Rent to Own"?

[Avery Bernstein]

Our former neighbor approached me with "renting to own" our old house.

I talked to him today.  He doesn't want to do a deposit or first/last...just the $1200/mo that I told him so that he can "rent to own".

I'm thinking not.  YES...he's been a good tenant where he is.  And he keeps up the house, and he's done improvements, and I don't believe he would be a bad renter.  I think he would be a good one.

But...doesn't "rent to own" usually require a larger deposit/downpayment?  And what portion would you put towards the purchase price?  He didn't even ASK the purchase price.  

Thank you!

Avery