Should I have a contractor move into property

[Hedman Maximus]

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..

[Nathan Gesner]

Quote from @Hedman Maximus:

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..

I advise against exchanging work for rent. What typically happens? The work is not completed (or completed improperly) and you haven't collected full rent, so you've lost twice. I have seen so many Landlords get burned by making verbal agreements with their tenants only to get burned.

Whether the tenant is a licensed contractor or just a handy Tenant, keep the rent and work separate. The tenant pays market rent to live there. You pay the Tenant for work when it's complete and to your satisfaction. I also recommend you have a written agreement for each job the Tenant is doing: what will be done, where it will be done, what materials will be used, who pays for materials, what you will pay for labor, a deadline for completion/inspection/approval/payment, what happens with the improvement when the tenant leaves, etc.