Featured News 2019 Are Parents Good Landlords?

Are Parents Good Landlords?

Parents are always trying to look for ways to help their kids. If you are parent, you understand that providing for your children is a joy and a responsibility that you are more than willing to take on. Yet, good intentions sometimes end in a lawsuit, a family conflict, or more. In some cases, parents looking to invest will consider renting their purchased properties to their children as a favor and business arrangement.

Renting Out Property as an Investment

Purchasing a property for rental is a long-term commitment, so make sure to take a good look at your budget before buying a home to rent out. Also, make sure that you buy property that is a viable investment. Don't choose a home only because your child likes it. Instead, look at their desires as well as the potential for a home's value to increase.

Positive Aspects of Renting to Your Children

Renters that You Know Personally

Positives to renting to your children can be abundant. First, you will know your renters well, and won't need to worry about unexpected surprises (for the most part.) You know how neat your children are, and what areas they will struggle with. You know whether they are responsible with payments, and whether they will maintain the property to your standards. Additionally, you will likely have a higher level of trust with your children than you would with other renters. So, it might not be as difficult to handle confrontational situations if they arise. Being a landlord might also help your children learn how to be good renters. They can learn from their mistakes as you teach them how to take care of their rental property.

Finances & Geography

Renting to your children might also help you remain geographically close to them. Additionally, your investment may allow them to live in a location that they otherwise wouldn't be able to afford. After your children move from your property, you may be able to use its sale to help fund your retirement. You can also help your kids to learn how to be independent by giving them their own place but aid them by acting as a landlord. If your kids are going to a college nearby, then renting this property will give them the feeling of an adult college student without making them move to a location with a lengthy commute to school.

Negative Aspects of Renting to Your Children

Relationship Dynamics Matter

While the benefits of renting to your children can be rewarding for all involved, there are also some cons to consider. Importantly, you should only rent property to your children if you have a good relationship with them. Poor relationships might result in legal battles and issues with your property. Additionally, if your children struggled with behavior at home, it's likely that they will not be great renters.

Consider if you could evict your son or daughter if things go wrong. You will also need consider how to confront your children if they fail to pay rent or cause damage to the property. If things go wrong, renting a property to your own children can strain your relationship with them.

What if Things Go Wrong?

If your situation calls for legal action, then you have the right to sue your children as tenants. Legal action might be required for missing rent, damaged property, or other violations of your lease agreement. Find a real estate attorney near you to take your tenants to court over a disagreement or infringement of rights. To find a lawyer near you, use our directory right now!

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