Residents
Owners
Renting to friends and family can either be a very positive or very negative experience. It is imperative that you continue to treat your rentals like a business and treat your tenants as tenants even if they are friends or family. In the following we will explore the Pros and Cons for whether renting to friends and family is right for you.
Pros
- The Background Check
Obviously you know this person. Maybe you know them extremely well, and if you don’t, then it will probably be very easy for you to get the information that you need to know. The “professional” tenant has very crafty and sneaky ways of getting around a standard background check.
- It Feels Good to Help Someone Out
There are many situations that someone might find themselves is (ie. Divorce, just starting out or an elderly relative). You could be an understanding landlord and help accommodate some of their special needs.
- Less Likely to Vanish
A stranger might move out in the middle of the night and leave little trail of finding them for payment. You have a mutual network with friends and family and they are less likely to do that to you anyway if they value you.
Cons
- Put a Strain on a Current Relationship
Whenever one person is in a more powerful position such as, a tenant under a landlord, the relationship can become strained. The tenant might also develop hard feelings if they feel like you are not fixing something fast enough, etc.
- They Expect Special Treatment
This is the most common problem to develop when renting to friends and family. They might try to bend the rules because of your bond or expect discounted rent. Keep firm and maintain your policies and regulations.
- Future Relationships Impacted
In the worst case scenario you might have to evict a friend or family member. This can impact not only your relationship with them but as others in your mutual network. People may feel as if they need to take sides.
Renting to family and friends isn’t always a good or a bad idea. You will have to determine whether the pros outweigh the cons for your specific situation.
