User Question: Should I rent to family or friends?
To John B. from Ohio:
Generally, I would say NO for the following reasons:
Friends and especially family members would take advantage of the relationship when it comes to paying rent on time and contacting you for every little problem which your lease should have them address. Friends and family members may not treat the property well thinking “You can afford to fix it” and will expect you to take care of minor issues.
They may also call your personal phone line as they would likely know this number and want to ensure that they get you to complain or request that you come over to repair something.
I have heard of friends or family members not paying the rent in full or on time because of hard times or other priorities, figuring that you won’t evict them and “give them some slack”.
It is really up to you if you want to rent to them as you know them better than I. If you know them well and you feel that they will not take advantage of the relationship, then you might want to take a chance. If you decide to take this chance, keep it a business relationship and make sure they understand that approach that you will be taking for the rental and BE SURE TO ENFORCE THE LEASE AT ALL TIMES as you would with a normal tenant. Be sure that they understand the lease and know what is their responsibility and what is your responsibility.
So, in summary, I would not recommend renting to friends and/or family.
For further information, consider purchasing my book. You can find further information in the book at:
Chapter 5
- Securing Tenants
- Tenant Selection
- Poor Tenant Trends