Renting out a property is a business and should be treated as such regardless of who the tenant is. Here’s how to put the right structures in place when renting to family.
Blood may be thicker than water, but this doesn't mean that a landlord should drop his guard by not insisting on a rental deposit or not ensuring a lease is signed when renting property to family.
Although it may seem like a fabulous idea to rent to someone in your family, things don't always work out and if you've simply allowed someone to live in a home without taking the necessary precautions, the fallout can be dramatic and the family rift can last a lifetime.
Unfortunately, there are going to be instances where the family connection is abused. Rent isn’t paid, or payments are received sporadically, the property isn’t well looked after or is even purposely damaged. While these issues are easily dealt with when they involve a regular tenant, things can - and often do - become more difficult when you are dealing with someone you love.
What every landlord needs to understand is that renting out a property is a business, and regardless of their relationship with the tenant, has to be treated as such. The rules basically remain the same and landlords will undoubtedly make things easier for themselves if they put the right structures in place before a member of their family moves in.
Communication is always important between a landlord and tenant, however, it's absolutely vital when it comes to leasing a property to someone in your family. Remember, this is business and the same rules that apply to a stranger need to apply to family. Making everything crystal clear before the tenant moves in will possibly save you a great deal of stress and heartache later.
Article from privateproperty