Renting a house to family

[Mark Webb]

Hello. Brand New here. 

Long story short, we currently have a houseful. Our 2 daughters, my brother-in-law and his wife. Space is at a premium, as you can imagine. 

My wife and I are considering moving to a new place and renting the house to them. Right now still in the exploration phase but I'm thinking there could be some serious advantages and drawbacks to this scenario. The house still has a mortgage and, quite honestly, we couldn't afford 2 "rents" should things go South with the kids. Anyone have advice on this? It would be much appreciated.

Thank you,

Mark

[Aaron K.]

Don't do it.  They can either get a market rate house from someone else or discounted rent from you if you want to give them discounted rent you might as well let them live for free.  If they rent a house at market rate and you want to rent your house at market rate nothing changes in finances for either party but you don't get tangled in a battle with family.