Legal Question in Landlord & Tenant Law in California

The best way is not to do it. There is essentially no way to structure a deal like that, that is a better deal for the landlord than just continuing to rent, or selling and reinvesting the money, that is also a fair and good deal for the tenant. As a result, either the landlord and tenant cobble together a deal on their own and wind up in litigation when it falls apart because they didn't know what they were doing, or it is carefully prepared by a knowledgeable real estate attorney which turns out to be a waste of money when the tenant cannot perform, or winds up being a waste of money for the landlord when he could have just kept renting or just sold the property.