Renting to my Handyman...Good or Bad Idea?

Question

Hello,

My handyman is selling his house and will need to start renting for the time being. He offered to rent one of  my apartments for a good price for him and his wife. He does a lot of work for me and is currently using my basement for storage in return for work around the house.

Is this a good idea to go through with renting the apartment to him? I would still treat him like a normal tenant and have him sign a lease but the downside (god forbid) if I ever needed to evict him could turn out messy.

Should I realistically consider this option? Or do the potential consequences outweigh the benefits.

Marcia Maynard · Answer

We've rented to contractors of ours and are currently doing it. It can work if you set clear expectations from the beginning. Qualify them as you would with any other tenant. Use your standard rental agreement. Talk about the different roles ("hats") you both will be wearing. If he and his wife understand and abide by the rental agreement you should have no problems. For us, the need to evict any tenant is very rare. Don't let fear get in the way of what could become a win-win.

Austin Chambers · Answer

I have had some experience with this.  It definitely depends on the situation.  I like Brandon's comments on what type of handyman he is.  If it is someone you do not want to lose, I would do it as long as he passes your normal Tenant Screening.  The first time I rented out to a handyman, I made the huge mistake of giving him a discounted rent for standard maintenance on the property(changing filters/mowing/snow removal).  This gave the handyman very little incentive to get these things done timely as I had already given him the discount for it and it was a huge headache calling him every time, leaving messages, not getting called back, etc.  After 6 months, we parted ways and the relationship was ruined.  The second time I did this, I didn't discount rent at all, but instead I would take x amount of dollars off rent for everytime they performed one of these services, which they had to track and report to me.  Early on, I checked up fairly often to make sure these things were being done, but as time went on, he had earned my confidence and it ended up being a great fit for both of us.

Brandon Reed · Answer

Hey @Steve DellaPelle - I'm not speaking from personal experience here just my opinion, but I'd say that this depends on how heavily weighted each benefit is to you. What I mean is...is he a handy man that is extremely good/reliable and that you never want to lose? That weighs a lot. On the other hand, is that property extremely hard to rent, therefore making getting it rented weigh a lot as well? I'd say those are the two things you need to put up against one another to make the best decision. Hopefully that made sense and was helpful. Best of luck to you!

Steve DellaPelle · Answer

@Marcia Maynard Thanks for the reply! That was going to be  my game plan...let the expectations be known and treat him like any other tenant both when screening and if they end up agreeing/signing a lease. I think there is great potential here!

Thanks everyone else as well! Lots to consider here...

Michael Guzik · Answer

@Steve DellaPelle That's a great question and definitely a sticky situation. I would sit down and write out all the pro's and con's. Take the emotions out of the decision and really think on if it makes sense. Many people use relationships for leverage in business to get away with things and cut corners so keep this in mind. It would all depend on the property and the handyman. If he is just a decent handyman that helps then I would not think of doing so unless the property is hard to rent out and he is more than qualified. However if he is an exceptional handyman that is honest, reliable and goes above and beyond then I would rent to him and do whatever it takes to keep him. You always want to take care of honest, reliable and amazing workers and if he is like that renting to him would definitely be a great way to take care of him.

Steve DellaPelle · Answer

I am going to tell him to pursue other options, he is worth keeping around so I don't want to risk the possible loss.

James Wise · Answer

It could work out fine, just not that if it starts to go south not only do you need to evict your tenant you also need to replace your handyman.

Steve DellaPelle · Answer

Thanks for the replies everyone...it seems like there are a lot of mixed reviews here...some with good experiences and some not so much....

I will have to take this one back to the drawing board but I do appreciate everyone's input! There are always pros and cons and every situation is different, I will need to take that into consideration.

Cheers!

Renting to my Handyman...Good or Bad Idea?

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