Monday, March 3, 2014

Renting to FAMILY or FRIENDS

I’ve never heard the story that goes “I rented to friends/family members and it was great.  I got market value of rent, paid on time every time, and I did regular increases during the tenancy.  My friend/family member let me know about maintenance needed, and they actually took care of a lot of the little things themselves, and I was really pleased about it.  I did inspections of the property every three months, and the place was immaculate each time I visited.  At the end of the tenancy the property was spotlessly clean, I was able to re-rent it immediately, and I authorised the refund of the entire 4 weeks bond money.  We are still close today, and I’d recommend it to anyone”.

Instead, I hear stories like the one I heard last week.  The landlord rented the property to their step-son, rent free, on the condition the step-son invested money and time in doing up the (very dated) property.  Three years later, the property was in worse condition than ever before, the landlord was about $70,000 out of pocket for rent, and took two months to clear out the rubbish and clean the house.  It is still very dated.

Sadly, that is just the latest story in a long list of tales of woe where people rent to friends or family.  If you are tempted to do someone you know ‘a favour’, get property management to be the go between.  It makes rent issues non-existent, inspections will be done regularly, and you can be sure they are kept accountable.

Call us at Rental Results if you need help with these issues.
Have a story to share?  Email Jackie with your tale.

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