Renting Real Estate To Friends – Should I or Shouldn’t I
I know that the first instinct that most people have is that you should definitely rent to your friends if they want a property you own. It just makes sense if you think about it. Everyone wants to do a favor for a friend. The problem is that when you are renting out real estate you are not really doing anyone a favor. You are conducting your business. You have to always remember that the bills keep that you owe keep coming no matter what the circumstances.
If you do decide to rent to a friend you have to clearly state some ground rules before they ever move into the property. Here are three things that can be stressed.
1. You must explain to them the expenses associated with the property and how the lack of rent in a timely matter will hurt you in a big way. Even though this may seem obvious you would be surprised how people don’t get this concept.
2. Most people assume that just because you are a property owner you are rich and they could take advantage of that. It will be easy for a tenant, no matter who, to think that they could pay late and it does not make any difference because you got the money. It is a good idea to explain to them that this is your business and you cannot afford delays in payment.
3. Finally you must clearly spell out what will in fact happen if there is alack of rent being paid. A good understanding from the beginning will save you a lot of trouble down the line.
I found that if you are going to rent to friends or family good communication from the very start is vital in keeping your relationship on good terms.
Article Source: https://EzineArticles.com/expert/Craig_A_Williams/165143