You’ve got a property and your friend or a family member needs a rental. Should you let them rent your property? If you are a property owner not utilising the services of a professional property management company, there is no protective barrier between you and your friends. A property manager is a licensed professional and remains neutral without any personal connection to your friends or family members.
Your property is your business
You must keep in mind that your rental property is a source of income for you. You are an investor and your property is one of your greatest assets. You are well within your right to keep things professional and not allow emotions into the transaction. If you do allow friends and family members to rent your property, you must treat them just like any other tenant. This may be easier said than done.
You overlook aspects of your business
You have faith and confidence in the character and behaviour of your family and friends. Therefore, you might overlook carrying out background checks or the rigours of the tenant screening process that are applied to other applicants. You may even feel awkward in asking them for a security bond that is a must for ordinary tenants. You also might tend to charge less than usual rent prices from your loved ones. This hampers badly with your investment earning and you could start to suffer losses.
It is literally impossible for you to send a breach or termination notice without a signed legal lease agreement. Such tenants may not inform you about necessary repairs and maintenance issues. This in turn ultimately reflects on the condition of your property and causes further loss to you.
When considering whether to rent your property to family and friends yourself you need to carefully consider all the pros and cons and make an informed decision. Alternatively, you could rent to family and friends but have the added safeguard of going through a property management agency.