apartment therapy changing the world, one room at a time

Unless you have some sort of rent-to-own agreement, i don't think you're necessarily entitled to a discount. But since you have been paying renting (and indirectly paying the mortgage), the owner might be willing to give you a better deal than if the place was on the market. But there are still alot of unknowns... is the owner planning to sell or are you just making an offer? If the owner is planning to sell, your offer to buy would save them the trouble of getting a realtor, putting the apt on the market, staging it for open houses, etc. But I wouldn't expect a huge break.

Unless your rental agreement sets forth a discount, you are not entitled to a discount. However, you do have negotiating power:
- Check the SF rent control laws. I believe that unless the entire building is being converted to a Tenancy in Common (TIC), you cannot be evicted due to a sale of the property.
- The developer (if there is one) may want to get a few "easy" sales in as it helps other potential buyers get loans. (Some lenders don't provide loans unless there is a certain owner occupancy rate.)
-If you are paying rent to the developer, not an individual owner, the developer may prefer not to refurb your current place if you buy it and you can negotiate the price down on this point. (This doesn't mean you should forgo an inspection, title insurance- if you are a cash buyer, etc.)

There is no 'entitlement'. Any discount or incentive is at the sole discretion of the real owner (i.e., your rent was paid for services rendered, in this case the roof over your head, and unless explicitly spelled out in the rental agreement did not imply ownership - then or in future - on your part).

Discount? In San Francisco?

Hahahahahahahahaha..........

Good luck with that!!!

The owner is going to be motivated to take the highest offer s/he receives. I'm not sure why they'd give you a discount.

Yeah, sorry -- you aren't entitled to any discount unless you signed a rent-to-own agreement, in which case your contract would say what you are entitled to.

Also, that would only apply to your particular apt.

Some cities (like New York) have special provisions for rental tenants if the entire building goes co-op or condo. Check with the rent control department, as mentioned above.

But if there's no government mandated "insider" deal, and noting in your lease, I don't see why you'd get any discount in a desirable real estate market.

"entitled"? nope.

You may be able to use the same realtor or broker as the seller and get the 3% buyer's commission waived. Assuming you trust their realtor.

why would you be?

Second on Ghunt's point. If you are bringing the offer to them then you could be able to secure below market prices due to the hassel of listing the property, and potential fees they would encur.

No entitlement though.

tried to do a deal like that years ago in sf. the tenants in the building all got together and made an offer on the building. but there was no "discount"...certainly no entitlement. just because you rent a place doesn't mean you get a deal on the same place when it goes up for sale. in the absence of a rent-to-own agreement in the lease, rent paid does not equal down payment. oh, and our deal fell apart when the owner couldn't find a similar property to put her capital gains into to avoid major tax liability.

If that was the case then SF would have A LOT more home owners than renters! Over 80% of SF residents are renters!!

Check out this popular SF Real Estate blog. The writer is a Realtor AND a long time renter in SF and he tells it like it is:

http://thefrontsteps.com/

Holy hell that was a nightmare getting in to comment. Seems every handle is taken...anyway. Just wanted to say thanks to burnttoast for the link.

Yep, I tell it like it is. Truth be told, I own a lot of real estate, but rent in SF. I also am HEAVILY invested in the stock market. You could say I don't believe 95% of what my colleagues tell me. I'm an anomaly. For example, all the Palo Alto agents I've been dealing with lately tell me their market is going gang busters...yet a TON of property is sitting on the market. And most of my colleagues in SF are telling me (and all of their clients) we hit bottom. Not quite (IMO).

To answer the original question. Expect nothing. Unless you signed the lease with an "option" to buy, often referred to as "rent to own" or "lease option", forget it. Your landlord owes you nothing, and you have nothing to stand on. Your rent $ was as good as flushed down the toilet. However, if your landlord is nice, they might work with you, so as I always say, "It never hurts to ask."

Good luck!

alex (the editor of theFrontSteps)

I forgot to add, if the whole building is up for sale, or just one unit, and you're thinking your landlord might kick you out, talk to a landlord/tenant attorney. You'd be amazed at what kind of power you (as tenant) hold over your landlord when it comes to eviction.