Mixing Business & Pleasure: Should You Rent Out To Family & Friends?

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If you are in the property management business, you probably often come across individuals who will expect some extra benefits and perks when renting. What if these individuals are your very own family members or close family friends? If you have an available private flat to rent out, can you really say no? Most importantly, SHOULD you say no? This can be quite a complicated situation to handle. Here are some tips on handling it.

Gaining A Deeper Understanding Of The Changed Relationship

Ideally, rental properties should be treated as a formal agreement between landlords and tenant. With the involvement of friend and families however, essential elements of the contract such as lease agreement, term of stay and security deposits become somewhat of a taboo topic. It is assumed that the level of relationship will resolve the disputes.

This relationship will be used as means to make several concessions on the requirements for a rental application and necessary background check. This could place both parties in the risk, without any contractual agreement to dictate the terms of the stay.

Avoiding Difficult Situations Later

1.     Be Honest About Expectations

It is important to understand that, unless you’re willingly making discounts and concessions, rental industry is after all a business and should be viewed as such. Try to make it clear in the beginning that the relationship, though personal, has now transformed into a business partnership as well, and that it is imperative that the terms of the agreement must be honoured under any circumstances.

2.     Make Sure They Have A Good Rental History

If the relative that you are considering to enter in a rental agreement with has an impeccable history and is known to be a regular payee who will maintain your property, then this should not be a problem in the least! You can also continue to enjoy a personal relationship with them without the fear of them taking advantage of the situation.

3.     Prepare To Deal With Inevitable Ramifications

A lease contract is after all a contract, and it will come to an end. Ensure that when the time arrives, no hard feelings remain on part of the property owner and tenant. Throughout the time of this arrangement though, it is essential you retain a sense of professionalism and courtesy.

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