Tennant Wants to Move in During House Rehab

[Jason Clark]

Hi All, quick question. I recently purchased a SFR as a rental unit. It needs some work due to termites, old wiring, and plumbing. In the meantime I have a potential renter that says she is willing to move into the home during the rehab. I told her that if she wants to move in early that there may be days or weekends when she cannot stay there, such as during tenting for termites, electrical work etc and she is fine with that.

The deal I offered her was this, I'll give a 50% discount on rent, $600/mo, if she agrees to a 1yr lease. After 1yr rent goes to $1200, she can stay or go at that point. I ran her background, she's good. I have another renter in a studio unit on same property @ $400/mo. Studio does not need work.

My thought was that by having her in the house I will have $600 a month that I otherwise would not have if the house was empty during rehab. This also allows me to do much of the rehab over a longer time period since I will not be rushed to get a tenant.

Any thoughts on this? Am I overlooking something? I think I'm being generous in the discount but she is also willing to live in a house that will have people in and out of it while work is being done. She is single, no pets, just looking for a place to stay closer to her work.

Just throwing the idear to the wind here. Thanks in advance to all who reply!