Well, you will get what you pay for as far as advice goes, on this board. Bear in mind that all state laws are different. While portions are based on common law there are about as many variations as there are people.
Understand that "rent to own" and "Land Contract" are not the same thing. Rent to own is a rental agreement. Be aware that the renter is going to think he owns the place from the start.
"Rent to own" people often have poor credit. I would sugges that you run a full (written) credit check on your "rent to own" suspected buyer (occupant). Find out just how bad his credit is. You may have second thoughts about this course of action.
Also note that the marketplace is a mess. For several years anybody that could brethe could get a home loan for up to 125% of the purchase price. During this period of time all the folks who would not pay rent were able to get mortgage loans even with a couple of evictions on their record.
Combine that with a lot of inflation in the housing market and, wah lah; you end up with a "credit crises". Now the people who are the occupants of oversized and over priced houses are getting tossed out on their rears.
They are now looking to rent, or "rent to own" and are looking for new victims. They like to live free, paying payments on a regular basis is a pain for them. Often they are short of cash for the security deposit (you will need to "work with them" on that issue). Don't bother to mention first and last months rent to them they might have a stroke. Don't bother to mention any rules to them either, remember they think they own the place from minute one.
Most generally they will know all about "free" lawyers. Legal aid and so on will provide them with a lawyer to fight the mean landlord who thinks that he/she still has some ownership interest in the property. Note that water bills in most places will attach to the property if not paid, so set aside a few hundred dollars to deal with that issue.
Also bear in mind that when the new occupant causes some sort of civil problem it will become the problem of the owner of record, That will be you for a long time yet. Such things as junk cars, new buildings, and pit-bull kennels come to mind right away just from my own recent experiences.
Realtors like to be paid. They prefer cash, but can usually work with checks too. In the case where your rent to own deal is done by your freindly Realtor the fee becomes "by agreement". Often the Realtor will want half of the sales commission up front with the other half later on. They hate this because they often do not get paid the full amount ever. Occupants, who need "rent to own" services are often not dependable and have ruined credit. Likely their income is irregular. They will not hesitate to ruin the "rich" landlord if they need to (or can). So often the Realtor does not get fully paid.
Be very careful with this issue, it can eat you alive.:croc: