Should you rent to a friend?

Cleveland, Ohio
General Landlording & Rental Properties
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Should you rent to a friend?

Benjamin Sulka
Cleveland, OH · Member since 2022 · 811 posts · 578 votes

Hey BP, 

For those who have rental properties. Would you ever advise renting your property to a friend? What are some potential downsides here? 

Please comment if you have any experience or advice. I have no plans to rent to any friends but I am curious. 

Thank you! 

Ben Sulka



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Adam Martin
Rental Property Investor · Member since 2020 · 1k+ posts · 1k+ votes
4y

Not if I wanted to keep them as friends, same recommendation for family.  I keep my business and personal life separate and have declined family even though they were highly qualified because I’m not even putting myself in that situation and they understood. 

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  • Benjamin Sulka
    OP
    Cleveland, OH · Member since 2022 · 811 posts · 578 votes
    4y
    Quote from @Nathan Gesner:
    Quote from @Benjamin Sulka:

    Be careful mixing relationships and business. If the business side goes south, you'll lose the relationship, too.


     Absolutely. I appreciate the response, Nathan. 

    0Reply
  • Benjamin Sulka
    OP
    Cleveland, OH · Member since 2022 · 811 posts · 578 votes
    4y
    Quote from @David A Lisowski:

    As others have said, I would also say, "No."

    House hacking works on the first, maybe, second, but after that, you should only have tenants.

    Friends as roommates will cease to be friends. Friends as tenants will cease to be friends.

    Friends as business partners (providing a service) will neither remain friends nor partners (and probably won't really provide the service).

    Networking, sure. Being friendly, most definitely.

    Mixing friends/family with business, no go.


     Thank you for your advice, David! 

    1Reply
  • Benjamin Sulka
    OP
    Cleveland, OH · Member since 2022 · 811 posts · 578 votes
    4y
    Quote from @Shane Kelly:

    While I definitely do err on the side of caution, I think I would rent to friends when I house hack. I would make them qualify just as if they were a random tenant. I don't mean that I would run a background check on the person that I've known since kindergarten, but I also wouldn't rent to the friend who I know hasn't held a job for more than 3 months since highschool and has nothing to stand on. Circumstances matter, but I also so see the side of the argument that it's not worth the drama.


     Thanks for the response, Shane! I do plan on house hacking. 

    0Reply
  • Melanie ThomasBusiness Member
    Real Estate Broker · San Antonio · Member since 2022 · 1k+ posts · 489 votes
    4y

    Let a buddy rent a place for 6 months, we are no longer buddies. They wanted rent rebates and had minor maint issues that were blown way out of proportion. Demanded a full deposit because we were friends and I know good reasonable vendors. Expected me to eat the cost! All in all, it was bad. I would never advise this. I stuck with the lease and what was in writing, still ended in broken friendship. Happy Investing! 

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  • Henry T.
    Member since 2022 · 1k+ posts · 1k+ votes
    4y

    yes and no. Yes if I need a place to stay. No if you need a place to stay.

    0Reply
  • Muhammad Amawi
    Investor · Cleveland · Member since 2022 · 131 posts · 115 votes
    4y

    I would definitely rent to a friend. Just be clear from the beginning that when it comes to the lease and property, business is business. 

    Setting clear expectations and having everything in writing like any other situation is what matters

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