[Zeke]

Lease option boils down to part of the rent accrues toward a down payment. Trading labor as rent credit is unwise for all the reasons stated above. Trading labor for straight rent is not too bad a deal. If the house is not up to speed, you could write out an improvement plan where periodic goals must be met or it would be considered as non payment. You can always write in a cash value so the renter can opt to pay money instead of the labor trade.

For him to build value while gaining financially towards the purchase is all negative for you.

Lease options were popular in times when property was going down in value because if the lessee walks, you keep the credits. There is usually a substantial deposit up front to place the burden on the lessee to perform. 2 months deposit is nothing.

Down payments are serious business. I would offer a lease option in return for a year's prepaid rent and the typical credit is 50% or less.