not paying rent tenant or guest?

[Andre Curry]

Im allowing my homeless brother and his wife to stay in a fixer upper I just acquired for free until it is fixed up. Since they aren't paying they're considered guest right? The place is in horrible condition currently but they dont care for obvious reasons. No lights, running water etc. I told them they could get the lights and water turned on if they wanted. Would that be a problem if its in their names? Also, this is my first rental property and I have no idea what im doing yet. Reading some books and watching videos on youtube to learn more. I just dont want to end up getting screwed by letting them stay there. Thanks for your time.

[Kevin Sobilo]

@Andre Curry, once they stay there a certain period of time they are have rights. Utilities in their name will only add to their claim. So, if you are worried about them leaving when the time comes, you should have something in writing such as a month to month agreement. 

That said, you shouldn't be allowing anyone to live in an unlivable property. That could open you up to liability should something bad happen.

Also, you may run afoul of the municipality as well. Has the municipality flagged the home as unlivable or condemned? Some municipalities are proactive about this some are not. However, if they become aware that people are living in a place with no utilities they will likely take action and make them leave. If they find out that you permitted them to live there under those conditions, there may also be repercussions. 

I understand that you want to help your brother, but I'm not sure this is a good way to do it. I think it opens yourself up to too much potential for drama and liability.