I would pay them separately rather than giving a rent credit.

We own 3 other rental properties that have a 6.5%-7.5% APR, and no credit card debt or any other high interest debt to pay off.

@Donald Hatter We send the information to a collection agency who attempts to recover the money; after they make several attempts they place it on their credit report. 

So for example, a 761 credit score will be in the 760-779 credit category, then going down to 740-759 and so on.2.

This isn’t/wasn’t a loophole - just tax policy. 

I am in one of the higher tax brackets and could be saving around 40k~ a year on taxes with this.

At a 7% annual return, this could grow to $908K after 10 years, providing immediate liquidity and diversification.Alternatively, holding the property could yield $825K net equity after taxes in 10 years, assuming a $900K sale, with the potential to defer taxes via a 1031 exchange if reinvested into another property.

Adding the ex to the title could trigger gift tax implications, so keeping it simple is best.

As U.S. citizens residing in Europe, we are required by the local tax code to hold the property in our personal name.

Taxes and requirements should be much lower for a LTR