Option Vs Lease Agreement?

Hi all. I am just about to enter into my first lease option as the landlord/seller. I just read a lease agreement and an option to purchase agreement. I understand that the two agreements need to remain separate from each other. There is a security deposit that I would think would be necessary plus there is a fee for the lease option.

Do you simply explain to your potential T/Bs that they will have to produce an option fee of, say, $4,000 plus one month's rent, plus a security deposit?

Additionally, the lease states that the T/B is supposed to notify the landlord of needed repairs. Yet, in an L/O situation the T/B should be resposible for all repairs, right? Or do some of you pay for repairs above a certain cost?

Thanks!
Paula S.

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