Once you are licensed, the BRE is expecting that all of your related real estate activity will be under your license and therefore all of the standards of conduct, duties, and I would say disclosures would apply.

You can rent to someone else, but not your relative. 

Unless, of course, his lateness is causing YOU to be late paying your related mortgage.Tenant #2:  I would nicely, but firmly tell her that you are unable to accept anything except FULL payment.    

@Jing Tagle  Well, let's just look at what they got from your relative just last year

Not that you would be a jerk landlord, but even if you're pleasant, you are better off keeping your relative position of power as their landlord.Then, just send them notification that the property has been sold to you and where they are now to send their rent.  

So, if you have the receipts paid for by your relative, and proof you sent the relative money to reimburse them, you have an acceptable paper trail, in my opinion.

If your hard money is costing you 15-20% and your relative is willing to lend at 10% there is no need to offer more. 

If I was you, I'd figure out how much time you think your relative will actually spend on tenant issues and maintenance. 

Jason,Private lenders are your relatives and people that know you well.

Do your relative a favor and find the best LA you can for them and learn the ropes.