Rental Property Investor · Redding, CA · Member since 2019 · 7 posts · 6 votes
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🙏.
Rental Property Investor · Northern, CA · Member since 2012 · 5k+ posts · 5k+ votes
5y
@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.
Developer · Atlanta, GA · Member since 2014 · 475 posts · 424 votes
5y
@Sean Moore
Hey Sean,
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.
Rental Property Investor · Redding, CA · Member since 2019 · 7 posts · 6 votes
5y
@Canesha Edwards @Jaron Walling @Kyle J. Thank all of you so much for the help! I called yesterday and informed him I would now be comfortable with renting to friends or family. All of your help really gave me the courage to have that tough conversation.
Rental Property Investor · Portugal · Member since 2018 · 61 posts · 26 votes
5y
Honestly, I've just rented my condo for a week and It's been a nightmare.
First, they want special treatment in terms of payment (this is VR so we ask for 50% with the reservation and the rest 1 week before entry). They want to pay after the stay, what is a BAD IDEIA.
Second, they demand all the services (this is an apartment not an hotel). Even when I tried to manage the expectations and explain the differences, meaning, cleaning is once every 4 days, there's a LIMITED amount of towels, etc... but they are calling CONSTANTLY asking for favors...
And in the end they argue about EVERY DETAIL (water not hot enough, room not dark enough, bed not confortable enough).
Rental Property Investor · Redding, CA · Member since 2019 · 7 posts · 6 votes
4y
Thank you for all the responses! I ended up not renting to friends and found some really great tenants who pay on time every time, and have ben wonderful to deal with! Thanks again for all the good advice!
Shawnee Mission, KS · Member since 2016 · 719 posts · 313 votes
4y
I avoid friends I may rent to family because they should be able to make the rent .The issue is of course is putting the hammer down on doing something so bad they need to be evicted now you have family drama that may last a life time or at least many years .
I am renting to my son who is a E.E ,I have him write out 4 months of rent checks makes it easier. I go over help plant a garden his dog is tearing some stuff up I will make him pay for it when he leaves .
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
4y
Did you accept free help from your friends dad for the rehab work or did you pay him? Free help means you owe him one, unless you are a selfish. If you paid for his help, then you owe him nothing.
In general it is a bad idea to rent to friends and family. Things go wrong and then you are stuck. If they stop paying or trash your place, you have the choice of going after them legally, but you lose your best friend. No matter what your friend says now, when the sh1t hits the fan, he will expect you to put up with his parents crap and hold it against you if you don't. Just say, sorry I have a firm policy on not renting to friends or family. I value personal relationships too much.
Nothing long term. Rent a place to them with a weekly rental rate with a defined move out date with possible extensions. Enough time to find a place. Just explain to them that you don’t want to rent to family/friends, trust me you don’t! Require them to rent a storage unit to store the majority of their possessions so it’s an easy move out for them, just let them have the bare necessities. Have an attorney right up a short term lease, with everything that needs to happen. Do a credit check also, if they have a poor credit score they will not pay you. I would insist that they pay the attorney fees if you do this, a few hundred buck can save you a lot of headaches. If they agree move forward. I would also ask that the son also signs the lease, so that when the deal goes bad and it will, at least he knows the deal and will still be your buddy. If you do a deal and it goes bad, you will loose your best friend. You will be a hero when they move in, and a devil when they don’t pay and are forced to move out. To be honest, I would help them find a place, possibly even help them with the security deposit. I’ve rented to family before and learned the hard way, you have a person that knows construction and can easily destroy the place in a few hours with a hammer and a sawzaw. I guarantee that when they don’t pay then rent, their reasoning will be that “ I helped you getting this place fixed up”. Yes you could sue them and wait years to recoup the money. here is what I recommended. Get involved and try to find a place for them to rent. Why can’t they move in with their son short term? Or do you have an extra bedroom for them to stay short term? When it comes to family/friends, they are the first person to screw you. Your going down a path that you will loose your best friend and loose thousands of dollars in rent and possible damages.
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.
I was a strong "no" until you said:
Another part to the story is y friends dad has helped with the rehab of this unit as well.
To me that changes the equation and I would say yes but with a written lease, security deposit, etc....