Should I make my brother sign a lease before moving in?

[Lourdes Medina]

Hello, I am new to real estate and still finding ways where I can learn more such as reading and listening to podcasts.  Recently me and my fiancé just bought a house and his brother is planning on moving in come September. I thought this would be a great opportunity to start practicing on becoming a landlord for our future buy and hold properties.  I was wondering if it would be a good idea to write up a lease and have him sign it? Will this lease and rental income count as landlord experience in the eyes of a mortgage company?

[Greg Scott]

I would not have a lease simply because I would NEVER rent to family.    There are too many potential pitfalls and nobody wants to ruing family holidays because of a fight.  I've heard too many newbies rent to family members and have a terrible experience.

Your mortgage company won't care about the "experience".  However, if you try to qualify for another loan, they will want to see both a lease AND that monies have been collected.  Have those and it is easier to qualify for the next loan.

Again, I urge you to reconsider renting to family.