Behave As A Landlord When Renting To Family
I feel that the path which mixes personal life with the professional is among the most difficult paths to tread. Yet, willingly or otherwise, we let the paths converge at times. An instance- landlords often have to take the tough decision of renting to their own family. At times, it might even be out of sheer love and quite a fancied decision.
However, it might be bent; there is no denying the hassles which can raise their ugly heads on a later day. Let me share with you a few tips to lessen any emotional or financial damage that such an arrangement can bring.
Don’t give them a rent-free stay
Though your love glands and emotion ducts will suggest you otherwise, it is prudent to charge them rent. Think it this way- had they rented elsewhere, wouldn’t they have paid rent? I also feel that it is inherent in humans to forget something which they are spared for a length of time.
Similarly, if you do not charge them rent for a length of time, they start harbouring the illusion that rent does not exist on this planet. Remember, rent is an important part of the household budget and such illusions can bring a lot of sorrow on a later day. So even if you have the financial muscle to pull through one rent less, you may indirectly harm your family by not charging them rent.
Don’t jeopardise your tax deduction claim
Be informed about the neighbourhood standards while charging rent. Sometimes, we go easy and charge a lot less in a bid to help our loved ones. If such is the case, I caution you to extend help in other ways.
Charging less rent would only mean that you won’t be able to claim a big tax deduction when the time comes for it (thus impacting the gearing of your properties).
Get insurance cover in place
Even if you are renting to family, make sure you get yourself a property and a liability insurance (under landlord insurance). After all, you are renting to humans and they are prone to error. What if they unwittingly damage your property? What if a faulty electrical system injures them? In such cases, the insurance will come handy.
Be clear about the property’s condition
While it might seem a little awkward, it is significant to show them around the property yourself and ask them to point out any anomaly before settling in. This record comes in handy in case of broken appliances, fixtures and fittings at the time of their departure.
You can forego tenancy bond
When renting to family, you can give a miss to the tenancy bond or advance rent. After all, this is one area where trust, more than any other attribute, matters and you already trust them enough (hopefully).
Ask them to go through a rental guide
Make sure that you provide them with a rental guide in black and white; one that neatly explains them the code of conduct to follow. As an instance, a few landlords want their premise to be free from pets. If such is the case, do not tamper with the rulebook just because they are your family’s pets.
Follow these tips and ensure a headache and heartache free journey as a landlord.
