Renting to undocumented immigrants

[Jessica Natvig]

Hi everyone. My husband and I are under contract for a duplex- our first investment property! 🎉 We plan to house hack, live in one side and rent out the other. One side is currently empty and the other has tenants who have been living in there for the last 5 years. They have a lease agreement that is year to year, it is up end of January, 2020. I met them during the inspection. They are extremely nice. Have been very helpful with allowing us to inspect, answering all our questions, and have taken very good care of their side of the property. We don’t want to lose them, and I can tell they would love to stay. However, I am concerned for a couple different reasons. They are way under paying. Current rent in that area I have seen is at least $1200 a month. They are paying $780. My husband and I talked and we decided we rather not charge as much as we could be to keep them there. Once this lease is up we were planning on asking $950 a month. I realize this is a large jump for most people to have to suddenly pay for rent. But I also know they won’t find a better deal. Anyone’s thoughts on that? But I am also wondering about renting to undocumented immigrants. Should I be concerned as far as our protection goes? I know legally we can have a lease agreement with them and I hope they can continue to be good tenants for us as they have been for the passed 5 years but what are the cons? Is it a bad idea to lease to undocumented immigrants as far as our protection? Has anyone been in a similar situation? How has it worked out for you?

Thank you in advance to your replies!