Lifetime Lease

[MaryAnn Houghton]

Hi.
My husband and I are new to Bigger Pockets and to rental properties. We recently purchased our first rental via short sale and are in process of fixing it back up.
We will be renting it to my parents (I know, renting to family can be touchy) and our insurance agent has recommended we draft a lease with a lifetime clause. The house was purchased with the intent for them to live there until they cannot live on their own anymore.
My question is this, does anyone have a draft or suggestions on what the lease should look like?
Thanks!

[David Krulac]

Chuck Redman

The technical name is "Life Estate". The tenant is usually the former owner, who sells the property to another party at a discount with the written condition that the former owner, now the tenant gets to live there rent free for life.

Its a little known real estate acquisition technique, but it is very old, not a new subject.