If so, how do you plan to update the lease terms?

I would state in a lease that the bedrooms in the basement are non-confroming.

Hi BPers,I have two questions related to a property I own in PA, which I'd really appreciate some input on:1) The tenant signed a lease with the prior owner (who I bought the place from).

I’m assuming the lease is month to month, since your considering modifying the price...Id inform the tenants that the rent will increase a small amount (maybe $50) next mont and remain for 3 months.

Review your lease.

These three - the NNN properties, Land leases, the TIC and the DST  are the four options used by the great majority of our clients who are reluctant to give up those hard earned tax dollars at the end like you expressed.They're all 1031 compliant so tax deferral works the same. 

They are interested in a lease option (rent to own) on a single famIly home.

When they applied for the lease did you get a copy of their Pay stub (Leave & Earning statement)?

On true NNN leases, the tenants are reimbursing for all expenses including management and CAPEX; @Joel Owens - care to pipe-in.Oren

My lease specifies that I will take care of any pest issues during first 30 days.