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Updated over 13 years ago on . Most recent reply

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Michael April
  • Potomac, MD
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partnership issues with owner occupied property

Michael April
  • Potomac, MD
Posted

How do you handle situation where you are partner on rental property. Your partner has 2 family members out of three in the property. How do you decide on rent for the two family members before determining expenses that are split by the partners?

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Ibrahim Hughes
  • Real Estate Consultant
  • Bloomfield, NJ
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Ibrahim Hughes
  • Real Estate Consultant
  • Bloomfield, NJ
Replied

Those are your partner's family members not yours. If he/she wants housing for his family he either has to a) agree to a lesser percentage to compensate you for the loss in profits as a result of the (presumably) discounted rent or b) find his own investment property to rent to family members.

Should we even get into the trouble and headaches that often arise from renting to family members?

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