This is a straightforward and common approach.However, make sure to document the change in the lease renewal or addendum, specifying the new security deposit amount.

A quitclaim deed is a straightforward way to transfer ownership, but it doesn’t address tax issues.

Hello Michael,I echo Jon, completing a 1031 of a single rental into DSTs in straightforward however we typically recommend a portfolio of DSTs for diversification and financial objective purposes.

A formal business built on this seems overkill as you’re essentially paying someone for a service that already has standard model.If you and the parnter have distinct business tasks/abilities (i.e. not what you would hire an agent or contractor for), such as off-market lead generation, that’s a different discussion.

This approach could keep things straightforward while accommodating their need for housing.

Whether you need a CPA with just three rentals depends on the complexity of your situation and your comfort level with DIY tax prep.If things are pretty straightforward, you might be fine with tax software for now.

Starting my own firm was surprisingly straightforward, thanks to the lessons I learned from past failures.

@Bill Hampton it seems we are both in Georgia. 

In CA, there used to be two different house numbers and it was straight forward to rent them as a separate unit.

If you have a written lease, this should be a straight forward matter to process the eviction.