Renting To Family Members
Hello,
I have family members that would like to rent property that is currently on the open market. I am sure this is a delicate situation (do not mix business with relatives..., etc.) and I was wondering what advice, comments or otherwise people who have done this before can share.
I want to make sure there is a level playing field so screening will be done just as for anyone else. Are there any other potential pitfalls that one should be prepared for?
Your input is appreciated.
JS.
I have done business with in-laws, but it is not recommended. You may want to invent an imaginary money partner in the property.
Then you can say "My Partner runs a hard-nosed professional operation here. We will do our part in renting you a safe, clean property...but you will need to do YOUR PART in complying with lease terms, etc.
Late Fees, Demand Letters and Eviction are all part of the penalty cycle if you violate our Rental Agreement. Do you still want to rent from us?"
If they still insist, turn the property over to a Managemant Company to collect rent and enforce terms.
[addsig]
I have rented to my immediate family, my brother and to my father. My brother eventually bought the property from me. My father stayed as long as he could then moved to an independent living facility.
I each case, I had good friendly relationships in place and trusted my family members to honor the terms of my lease. The property I had rented to my father was placed with a professional management company, the property Irented to my brother was a private deal between us and with no written lease involved.
I would say it depends upon your relationships. If you are on good terms and trust your family to honor their obligations,then fear not. Otherwise....