All Forum Posts by: Hedman Maximus

This sounds like the start of a story with an ugly ending - red flags everywhere.  I would not do this.

If you feel you must do this, I would structure everything so that the work and the tenancy can be unwound separately.  I would pay him market rate for trash out and renovation work and specify the work in an independent contract. I would have him complete an application AND do a background check on all residents, then sign a market-rate lease.  Do not mix the lease and work.  Trying to fire him for lack of work or evict him (for whatever reason) becomes a disaster situation if you have intertwined your lease with the contracted work.

 I'll tell you from personal experience not to do this.  I did this exact thing on my very first property and got burned by the tenant badly.  I'm not saying not to rent to the person, but you definitely want to keep the tenant/worker relationship separate.  Have them rent strictly as tenants and if you need work done, you can hire him or someone else to do the work.  

Hope it works out.  

@Hedman Maximus I wouldn't do this, either. If you trust him you can take him on as a tenant, but definitely charge him rent and pay him for his work separately. Tell him it's for tax reasons or something. Evictions in Binghamton are still next to impossible, and you don't want to put either of you in a bad spot.

Stephanie , thank you i appreciate your input.

@Hedman Maximus

Well.....

I've heard on podcasts and books that this is a great idea. My experience hasn't quite been that...

I did this a few years ago.

The thing is, contractors, handymen, trades folks seem to have a 2 year life span. They are GREAT for 2 years and then seem to disappear, go to prison, become alcoholics, or die. (Seriously, this happens everytime). The guy that I did this agreement with became an alcoholic. He stopped doing any work and stopped paying rent. (Started out great and was an excellent resource). 

As Nathan mentioned-Have him pay rent as normal, then pay him for any work done. That way you have grounds for eviction if he doesn't pay rent. If you have a "work agreement" how are you supposed to prove it's not done/not done right. He might say the place is cleaned out of all junk, you might disagree...then what? With a rent payment: It's either paid or it's not. 

Hi Biggerpockets community!!! I have a question. I got a vacant apartment , and I recently found a handyman, that does work here and there. He is interested in renting it, and moving in with his mother and fiancée, however , the apartment needs work, like painting and throwing the old tenants furniture and trash out. I was wondering how do I structure the lease, should I give him a month free rent, with condition of emptying the trash, and cleaning the apartment ? or perhaps do the painting and trash throwing myself, and charging him deposit and rent? I have to disclose the properties are 3 hours away from me in Binghamton NY. It’s been difficult finding workers. So far I put him to the test and he seems solid. The contractor family lives in the neighborhood, they sort of patrol and see what’s going on..