Renting to a parent... duplex investment

[Ericka L.]

Hey all, I'm currently under contract for my first home/investment...a duplex... and my mom has asked if she could be a tenant in the other unit. She lives in GA and is trying to sell her home since my dad passed away in December 2016.

She'd be an actual paying tenant, paying the same amount as the tenant who is vacating prior to closing. Is there anything I need to consider in this transaction? is a lease still recommended?

Does anyone have any experience with renting to a family member or just general advice on this?

thanks a lot!

-- E

[Corina Eufinger]

I have a lot of experience renting to family. I have had both my mother-in-law and uncle as residents at different times. 

It all gets down to the individual person.  With my mother-in-law I wish I had seen the signs that perhaps it wasn't a good choice to mix that relationship.  She is a very "woe is me person" and "every one else is making my life difficult". It severed my relationship with her because she was mad when I took deductions out for cleaning and painting (even after I spent my own time with my husband in there trying to make the deductions less). She hasn't spoken to me willingly since she moved out 4 years ago and I've made the efforts. 

My uncle was a good tenant. No conflicts there.  Sadly, he passed away in the unit so I don't know if I would have security deposit issues had he ever moved out.  

Try as hard as you can keep the two types of relationship separate.  Don't ask for rent or other tenancy things at a family get together. And don't be party to such conversations at inappropriate times.  I know it seems stiff but it will help you both separate the two relationships.