Hi,
I'm renting to a friend, we had a lease when he first moved in back in 2016. I needed the lease in place to buy (get the mortgage on) a bigger place for my family, and he needed a place for his family. I have not had him sign another since that original one. Rent has been steady, no memorable issues we couldn't solve and continue the arrangement.
He ended up having to store things at my new home location because he filled the yard with things the city came down on me about. It was a problem at my old home, the place he is currently renting, keeping the items there at the rental. It's unclear whether it was the town, police, neighbors, or all of the above that had a problem with his yard.
There have been recent threats by the police department to begin fining me for the violations. I have kicked the can down the road with a letter to the police department but that time is up now. My letter stated I would be evicting him but I don't have the heart to do it. I was hopeful that time would resolve or lessen the bad relationship that my friend has with neighbors and authorities. I have yet to check in with the police department about my shortcomings.
Above and beyond this, I had a garage fire at my place, it destroyed some of his items, and damaged others. My insurance didn't cover his items. His insurance company is asking for a lease that shows he had use of this area as part of the lease agreement. He had my permission, yes. He is my tenant, yes. It was maybe a year later that we decide to move things to my home residence to keep him out of trouble with the town folks. Will me generating a lease for last year and then this year, calling out the space at home, be unethical or illegal in any way? I have no urge to get into it with an insurance company.
On another side note, I thought what I was charging him was fair as it covered the mortgage and minor repair costs. I've been told my breaking even was costing me money. I need to raise the rent on the next lease I will have him sign to cover maintenance and fees. Do I have legal issues to deal with to raise the rent price? Is there a percentage that I am only allowed to raise rents year to year? I believe that double what the rent currently is a fair rate for the market.
There are major repairs it needs, that are on me, if I continue to own it. I would also consider selling that whole thing, just to be done with it.
I'm not sure if the tenant can afford what I need to sell it for right now. It was originally the plan to buy it from me when he could swing it, I just wanted to walk away from the closing table with $10,000. Now, I'm being a little greedy, it feels to me, but life has happened since he first moved in and things weren't what I thought they were either.
It was appraised 1 year ago at $160,000
The tenant pays $600 per month (Mortgage/Escrow just went up to $525 per month)
Bigger Pockets Rent Estimator says $1,100 (I'm thinking $1,200 after repairs)
Zestimate: $192,100
2 Beds
2 Baths
1,700 Sq Ft
2 car attached garage
Bonus unfinished space over the garage. (I'm thinking adding 2 Beds and 1 bath, or maybe a master with walk in closet and an on suite, a large corner home office, etc. raise rent to $1,600)
Needs: Roof, Siding, and Basement Work (potentially more space if the basement is redone, adding a bedroom and bathroom, rent at $1,800?)
I'm new to trying to be a good landlord, friend, and person. I'm open to all feedback and input. I will not hold anyone accountable for the advice I consider or actions I take, hit me.
