Hello everyone I have an interesting situation that I need some help with. My best friends parents just had to move due to there home having major code violations and them finding mold. They would probably not be my fist choice as a renters. They are currently living in a hotel and I feel badly if I say no. I try and tell all friends and family I won’t rent to them but this seems like a little bit different circumstance. Would you rent to your best friends parents? Would you treat them like any other tennant and screen accordingly? Another part to the story is y friends dad has helped with the rehab of this unit as well. Any suggestions or help would be much appreciated🙏.
Thank y’all in advance.
In this situation I'd go with my gut feeling. No.
It sounds like the word risk surrounded by the word RISK.
@Sean Moore I've actually been asked this before. I've also been asked (just recently) by a good friend who I've known for over 3 decades if I would consider loaning him money for a business venture (non real estate related). In both cases, I said no. Here's was my thinking and how I explained it.
Rather than asking yourself, would you rent (or loan money to) a friend. Ask yourself, are you capable of doing so and treating it like a normal business relationship, including utilizing all available options/remedies if things go bad? Meaning if rent doesn't get paid or money owed to you isn't paid back, are you willing to file for eviction or sue like you would with any other tenant/person? And then ask yourself, are you also willing to risk losing your friendship with the person? Because one way or another, if things go bad, you will no longer be friends. They'll either be mad at you for evicting/suing, or you'll resent them if you don't because you'll feel like they took advantage of you (not to mention they likely owe you a bunch of money which never sits well with most people).
Ultimately, in my case with my friend of 30+ years who asked to borrow money for a business venture, I told him no. I also explained to him that my answer was no because I valued our friendship too much.
It's not that I'm against loaning money or renting properties. Afterall, I'm a landlord and I've also loaned WAY more money than my friend was asking for to other people I knew for far less time than him (but that was business and not based on friendship).
In your case, it sounds like you'd be LOWERING your standards (since you said these would not be your first choice as tenants) AND potentially putting your friendship at risk. Personally, I just don't see that as a good idea. If it were me, I wouldn't do it, and if asked directly about it I'd just tell my friend that I valued our friendship too much to put it at risk. Hence the reason I have a policy to not rent to friends (or their parents).
Just my two cents. Others may have different thoughts. Good luck with whatever you decide.
I try to avoid doing business with friends and family all together because things always seem to go bad. However, I do understand your problem. So, here’s my 2 cents.
I would treat them like any other tenants, charge the regular rent amount, etc. Don’t change anything about how you would normally do business. Just my opinion.