Real Estate Ownership and separation

[Marisol Varela]

I co-own real estate with an ex-partner, we are going through a separation and were not married. This is our current primary residence. He would like to hold the property and live in it, while I would like to rent it to a third party, or sell it. In light of our disagreement, he proposed renting it out to himself. Essentially he would pay market rate rent to the property bank account, and I would keep my share of the pure cash flow, after accounting for reserves. there would be other details written into the lease regarding repairs and maintenance. 

I would move out of the property and receive the monthly cash flow, and he would live in the property for the duration of the lease agreement. Then we could renegotiate. 

This seems like an idea I would consider. I would absolutely get an attorney involved in the lease writing process, but I am afraid of any liability, legal, or tax blind spots that may impact me. I am curious is this is a common situation to be in for similar partnerships that end up in dissolution. 

[Logan McKay Zylstra]

I would recommend selling it to him at market rate or list it on the open market (I would certainly get a realtors opinion on the price before you agree). Most realtors would be happy to give you their opinion on price free of charge, but even for $100 or $200 it is well worth the investment so you don’t loose out on thousands or tens of thousands of dollars.

I don’t think keeping it as a rental and letting him live there would be worth the potential for a future disagreement.