Renting to friends or family

[John Cashin]

What is everyone's thoughts on this subject? My gut feeling is... BAD - don't do it!! But I have no reasons to support this, maybe someone here can provide some insight into this? Thanks :)

[Joshua Dorkin]

I think the only way you should consider doing this is if the landlord/tenant relationship is a formal one. I wouldn't do it without a written lease or without having all expectations clearly expressed in writing. I'd also make sure your friend/family is clear of the rules, fees, penalties, etc.

With that said, if you think this person is likely to flake on payments or be a bad tenant, you could be getting yourself into trouble. Business with friends and family is always much more complicated and could lead to a quick end to the friendship/love.

In short, I'd try to avoid putting yourself in this situation.