I have a seller who wanted to do a use & occupancy for his home for 2-3 months after closing. The first deal we had was cash, so the rent did not have to cover a whole mortgage. That deal fell through for other reasons and now we are in deal two, and they are using a mortgage. And a mortgage on a 2 million dollar range property is a chunk of change a month, think 7.5K, with 30% down. So 7.5K, plus around 4K in taxes, plus insurances. So the rent would be around 13-14K a month. The seller thought that was crazy.
The seller was yellling at me because he refused to understand that his rent would have to cover the new owners bills, including their mortgage, mortgage insurance, home insurance and taxes. He didn't understand why their mortgage payments should be included in the calculation - that was their choice. I tried to explain that they would essentially be paying him to live there and it never works that way, you always have to cover the new owners monthly costs on the house if you want to rent it back, I've done this many times and so have my colleagues. He got mad and yelled at me for never getting things right lol He hung up the phone in a huff. This is not unusual, they guy is a clueless entitled spoiled man-baby, and also VERY cheap and stingy, and has been this entire transaction.