Lease purchase like auto rent to own


All my lease purchases state that the lessee is responsible for minor and major repairs and responsible for injury to themselves and anyone else. But I’m worried that in the eyes of a judge it doesn’t really matter, I am the owner, and liable for injury, and damage to person or property.

One option would be to actually sign the title over to the tenant, but I know foreclosure is more lengthy and expensive than an evection.

I was wondering how rent to own auto companies do it, both use a title, insurance where the renter is liable with insurance, and with the owners they can repossess them easily.


Do you put their name as registered owner and not fully sign title over until the balance is paid off? If you fully sign over title you relinquish your interest and then you just terminated your contract which is no bueno. If I’m reading your post correctly.

I know someone that has many rent to own mh homes. He has them in parks, does a standard purchase agreement, does the as is where is, puts a clause in there stating the home buyer is responsible for all repairs, upkeep and maintenance, yard work, following park standards, etc. It doesn’t mention anything about injury on premises, I don’t recall it anyway. He rolls the insurance premium into the monthly payment so the purchaser is never uninsured apart from default. He sells a good product that is properly repaired and put back up to move in ready each time. What state are you in that the eviction process is so hard - do you have a tenant friendly system in your state?

I can see the interest of structuring it like an auto company but the mechanics have to be a little different in the documents I would imagine. Are you worried your buyers will flake on you? It’s a legit worry but at the same time, if you get good buyers in there, properly screened, employed, etc… how often are you intending to repossess. Sorry, my brain goes twelve directions with these kinds of questions, hope some one has some insight because that would be amazing if it was a way to structure them.


No, I’m not worried about them leaving. That’s the benefit of the lease purchase, the large down payment gives you a cushion in between tenants.

I’m worried about being sued. Some say being sued is almost an initiation into the club, but I’d rather not experience it. I do have insurance and an LLC.
One of the park owners where I have a mobile home lost a suit where a tenant fell out of a mobile home that he didn’t even own.

I’m worried about a tenant saying there’s a loose carpet and tripping and me being liable. I guess if that’s the case there’s probably nothing I can do, the tenant will find something and hurt themselves on it.

I have a prospective tenant that is offering 5000 down to move in, but she has one felony on insurance fraud. The insurance company says that she purposely got in a wreck because she knew the people in the other car. Of course she swears up and down that she did know one person in the car, but she did not know the owner or the driver.

I’m not sure if having this previous felony would make her more likely or less likely to file another claim. I am not sure if a judge will be less likely to consider a claim if they already have been convicted of insurance fraud.


I require all my residents to carry a minimum 1M liability insurance, I recheck annually that they are in compliance. There are no short cuts when dealing with liability issues.


We’d be the only park in the USA requiring that for tenant occupancy. It’s amazing you’re able to get away with that.


So you think if a tenant hurts themselves they can make a claim on their insurance? Would that insurance company not claim that the owner was liable? How does it work? What is a likely scenario?

Are insurance companies not concerned with who is at fault, just that they have to reimburse whatever is insured?

Even if they have insurance you cannot make them make a claim, but I’m not sure why they would rather make a claim against my insurance rather than their insurance.


Here’s my two cents.

If the buyer stinks, get away from them.

You are in control. Listen to your Jiminy Cricket and make the best choice for you.