Landlord Basics – Part I: Don’t Rent To Family Or Friends.

By
Real Estate Broker Owner with KGC Properties LLC, Tucson Property Management & Real Estate

A while ago – well maybe longer than a while ago – OK back when I bought my first investment property – I thought it would be a great idea to rent one of the units to a friend. He was down on his luck, recently divorced, needed a year to get back on his feet, had a good job and I’d known him for years – just an all-around good guy. 

Just two months into the lease: police calls, trash/junk violation notices, damage to the unit and more. It was driving me nuts trying to figure out how to handle it!  I know, anyone can do this – but it’s much harder to deal with a friend or relative when there are problems like this.

As with so many things, trying to make something business-related work with friends or family can backfire.  Regardless of having a lease, friends and relatives might assume that you will give them a break and that “rules don’t apply to them”.  They will do things thinking that it doesn't matter because they "know the landlord"  In the end, friends and family expect your personal relationship to come first, and if you try and follow the rent-related matters, your personal relationship quickly becomes strained.

And if the rent related matter is “non-payment of rent” – that usually ends the relationship.  Bottom line policy – don’t rent to family or friends.

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Buying or selling Tucson real estate, Mt Lemmon, Tucson bank-owned homes, Tucson rental homes, or Tucson lease option homes? Visit www.KGCPropertiesLLC.com .

                                                 

 

This blog is written with my opinions and my opinions are  presented with accuracy but not guarantees. Please talk to a professional before making any real estate, financial or agency decisions.    Gabrielle Kamahele Rhind - 2014. If you want to reprint parts of this - just email me for my permission: KGCProperties@gmail.com .

 

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Rainmaker
407,621
Michelle Francis
Realtor, Buckhead Atlanta Homes for Sale & Lease
Tim Francis Realty LLC

Gaby, 

VERY TRUE!  I helped a new landlord a few years back who is so thrilled to have a non friend, non acquaintance, non family member in his place who pays ON TIME, EVERYTIME!  His last "friend" wasn't paying rent, as they told the wife, they needed money to buy the items they wanted to take back to their mutual home country!!!!!  The tenant thought it should be no problem as the owners had enough money and she needed her money.  Priceless.  That's not a friend, that's a moocher!

All the best, Michelle

October 02, 2012 06:58 AM
Rainmaker
1,828,609
Barbara Todaro
"New Franklin MA Homes"
RE/MAX Executive Realty

Good morning, Gab...  good advice for everyone....if you're going to rent to family, keep a close eye on things...

October 02, 2012 07:08 AM
Ambassador
1,070,643
Paul Henderson
I always put my clients first in any transaction!
RE/MAX Professionals.

Gabs, We all learn this lesson sooner or later. That's why I use a property manager, let my moocher deal with my pit bull; so to speak. I love my property manager but I don't call her the 1st 15 days of the month...

October 02, 2012 02:47 PM
Rainmaker
1,580,396
Lou Ludwig
CRB, CRS, CIPS, GRI, SRES, TRC, e-PRO
Ludwig & Associates

Gabrielle

Short and right to the point . . . . Save the relationship and don't rent to family or friends.

Good luck and success.

Lou Ludwig

October 02, 2012 07:39 PM
Rainmaker
882,422
James Dray
AR., MO., or OK. I can find the home for you.
Wise Custom Realty

Morning Gabrielle I'm with you on that one.  I also have a problem listing properties for friends or family that can cause problems in of themselves.

October 03, 2012 03:29 AM
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Gabrielle Kamahele Rhind

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