Skip to content
General Landlording & Rental Properties

User Stats

14
Posts
3
Votes
Josselyn Jorge
3
Votes |
14
Posts

One month lease with stipulations

Josselyn Jorge
Posted Feb 15 2024, 06:13

Particular situation here! Looking to create a 30-45 day lease for someone who owns another unit in my building. She’ll be doing repairs in her own unit and would like to stay in mine while that happens since my unit is on the first floor and she can’t take stairs. The trade off would be she won’t pay rent in my unit, which is currently up for sale. However, she’ll stage it and also complete the repairs for the flooring. I’ll provide the materials and her husband will change the flooring. He has worked on my Unit before and she used to manage it, which is why I’d be more comfortable in this type of situation. Regardless, I’d still like to get a month contract with these stipulations to make sure the bases are covered. Any suggestions? 

User Stats

306
Posts
119
Votes
John Karg
Pro Member
  • Lender
  • West Palm Beach, FL
119
Votes |
306
Posts
John Karg
Pro Member
  • Lender
  • West Palm Beach, FL
Replied Feb 15 2024, 08:59

Hi Josselyn, 

I don't think there's really a format for such an agreement, but anything you write up and have signed by both parties is better than going off of a verbal agreement. 

That said, I see a lot of potential for things to go wrong and get messy here. What happens if she doesn't stage it to your liking or her husband doesn't complete the flood repairs on time? What about if the repairs in her unit are delayed and she doesn't move out by the time you'd like to list your property? I'd personally avoid making these types of agreements. 

John

User Stats

25,340
Posts
37,681
Votes
Nathan Gesner
  • Real Estate Broker
  • Cody, WY
37,681
Votes |
25,340
Posts
Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied Feb 16 2024, 05:10
Quote from @Josselyn Jorge:

I have to side with @John Karg on this one. It could work out, but I've seen agreements like this go sideways far too often. You would let her live in your unit for free in exchange for work. What if the work is not to your satisfaction, or not completed? You will be stuck with no money and have to pay to correct/finish the work. What if she stays longer than agreed? You will be stuck with no money and potentially more losses trying to get her out. 

My preference would be to use two separate agreements. One is a standard rental agreement where she rents the unit from you in exchange for money. The other is a contract to hire her husband to do the work and you pay him after the work is completed to your satisfaction, just like you would with any contractor.

  • Property Manager Wyoming (#12599)

American West Realty & Management Logo
BiggerPockets logo
BiggerPockets
|
Sponsored
Find an investor-friendly agent in your market TODAY Get matched with our network of trusted, local, investor friendly agents in under 2 minutes

User Stats

8,093
Posts
4,191
Votes
Colleen F.
Pro Member
  • Investor
  • Narragansett, RI
4,191
Votes |
8,093
Posts
Colleen F.
Pro Member
  • Investor
  • Narragansett, RI
Replied Feb 17 2024, 08:34

@Josselyn Jorge  don't they have to do the flooring before moving in?  If so two contracts like @Nathan Gesner work perfectly. You have a flooring contract and a lease, sign at the same time. Scope of work in the flooring contract.   The staging can be in the lease contract as show ready condition and what they should expect for showings in terms of number and frequency.