Skip to content
Two investors reviewing resources on a laptop

Get industry-leading resources — for free

Unlock resources for every investing strategy and stage with a free account.

By continuing, you agree to BiggerPockets LLC's Terms of Use and Privacy Policy

Followed Discussions Followed Categories Followed People Followed Locations
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

User Stats

71
Posts
7
Votes
Greg W.
  • Chicago, IL
7
Votes |
71
Posts

Renting a unit to your property manager

Greg W.
  • Chicago, IL
Posted

Hi, I work with a property management company at one of my buildings (a 7 unit) at 9% of rents. One of the units was destroyed by a tenant and need about $7,000 of rehab. 

The property manager offered to do rehab in exchange of rented out the unit as her office for free or cheap for a year or two. 

Would you do this? Would this effect the property value by decreasing the income I could have had for this unit or could rehab be considered a years rent for tax and property value purposes? 

Thank you, 

Greg

Most Popular Reply

User Stats

676
Posts
543
Votes
Jeffrey Holst
  • Investor
  • Chattanooga, TN
543
Votes |
676
Posts
Jeffrey Holst
  • Investor
  • Chattanooga, TN
Replied

I might do it but it would reduce the value if you plan to sell it soon.  If you are going to hold for 3+ years it probably isnt that big of a deal.  The main issue is whether the return to you cashflow wise is better if you just pay the rehab and rent it traditionally.  Its really just a math problem.

Loading replies...