How do I go about negotiating buying the apartment I am renting and value of prior rent paid?

I have been renting an apartment in Chicago for the prior 11 months. The owner of the apartment just owns this apartment and is renting it out after moving overseas. When discussing a lease renewal, he informally mentioned he would consider selling the apartment to me.

I mentioned this situation to a friend who said the prior rent I’ve paid could be used as consideration for the transaction, i.e. as a downpayment or credit towards the purchase price. I thought the rent money I’ve paid would really not be a factor in any negotiation and was surprised by what my friend said. I am having a hard time verifying how the prior rent could come into play.

Any answers or insight would be greatly appreciated.

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2 Responses to “How do I go about negotiating buying the apartment I am renting and value of prior rent paid?”

Issym Says:
July 11th, 2009 at 10:11 am
It will only factor in if the owner of the apartment wants it to factor in. It doesnt have to and it honestly shouldnt. You paid to rent the apartment. When considering buying it now it would be a different agreement and a new contract. You can discuss this with the owner and ask him if he would be willing to factor in any money paid in the past that you paid for renting. Good luck to you.
Box815 Says:
July 14th, 2009 at 10:10 pm
The time to answer these questions was when you negotiated your lease.

I see no reason why your landlord would give you any credit for rent paid. I assume you paid the going rate.

Given that your landlord is living out of the country they may very well want to avoid the bother of owning the property and dealing with maintenance, etc. If you want to buy then you could both do it without Realtors, thereby saving 6% and you might deserve the bulk of that.

You might also negotiate some sort of credit for rent paid when you sign a new lease.