Rent to Own part 2

To find out how much to charge for rent I call two or three property managers in the area and check the classified ads in the local newspaper. From these I get the average rent for a similar rental unit. Lets say I have a three bedroom two bath two car garage home that should rent for $1,200 per month. I would then rent my house as a rent to own for $1,300. I would credit my tenant buyer the extra $100 I'm charging above market rent when they buy the home. Say they have rented it for 12 months and then excercise the option and buy the home. They would receive $1,200 off the purchase price from their monthly rent paid on time payments. I stipulate in the option contract that only monthly rent paid on time will be credited towards the purchase price. This helps get it in their mind that they are going to own the home and motivates them to pay on time more often than a typical renter. They also take better care of the house than a typical renter would as they have pride of ownership.