Four Reasons Why Renting to Relatives Could Spell Trouble
Renting property to those close to you might seem straightforward and appealing for many new (and experienced) landlords.
But be warned – this arrangement often comes with unforeseen complications.
Here, we share four critical points every landlord should consider before entering into such agreements.
1) Blurred boundaries
When you rent to friends or family, the lines between personal relationships and business dealings can become blurred. This overlap can make it challenging to enforce rules, collect rent on time or address any damage to the property without causing personal conflicts.
2) Financial risks
The desire to help loved ones can lead to making financial concessions, such as reduced rent or leniency with late payments. These well-intentioned gestures can, however, impact your cash flow and potentially leave you out of pocket, especially when unexpected repairs or maintenance issues arise.
3) Legal and contractual loopholes
Some landlords might opt for informal agreements with people they know, thinking it unnecessary to involve legal contracts. If disputes arise, this approach can lead to complications, leaving you with little legal recourse to address issues effectively.
4) Missed opportunities
By renting to someone you know, you might miss the chance to secure a more suitable tenant through a letting agency. Professional agents can help you achieve a higher rent, find reliable tenants and handle the legalities, saving you money and hassle in the long run.
Think carefully
While renting to friends and family might seem convenient, it’s fraught with potential pitfalls.
It’s often wiser to maintain a professional distance and engage the services of a letting agent to safeguard your investment and your relationships.
We can help you do exactly that. Learn more about our fully managed and finders only rental packages. We will find you the perfect tenant for your property.
Call us today on 0191 455 9617 to learn more.