Giving the Tenant Money?
Hello all,
Just bought a new property and I decided to move in a tenant from another property that I own because she is not comfortable with the neighbors. The new place could probably rent for $1,000 a month but my reliable tenant can only pay $900. I have to change the carpets and do some other nonstructural updates like painting and sanding.
I am thinking about just offering my tenant $1,000 cash to do whatever updates they want and to leave me alone. Anybody ever do this? If I do it, how do I classify this expense when tax time comes?