Caretaker in lieu of rent

[Tracey Hamilton]

Should we have a rental agreement in the following situation, and should we say zero rent? We just bought a house we are going to rehab and flip. It is liveable, and we have a friend who will be living in it to basically babysit it, so local criminals don't target it. He will be living there rent free, sewer, water, trash and electric week be on our name. He will also work for us as a laborer, part time to full time, on the books. We don't want to declare any rental income or file schedule E. Just run expenses through the llc for the flip, and have him caretaker the property. Should we do a rental agreement , a generic I agreement, or what?

[Kathy Johnson]

9 times out of 10 you will regret mixing free rent and contract work.