Your rental property in Houston, TX needs to be treated as a business, and sometimes it can be hard to separate emotional decisions from business decisions. When you rent to a family member or a friend, you’re putting yourself in an awkward situation where you cannot always make the best business decisions for your property. You don’t want to choose between your business success and your personal relationships. Inviting family and friends to live in your rental property can be difficult, and in most cases, it’s best to avoid it.
Challenges Involved in Renting to Family
The goal of most rental property owners is to maximize the return they earn on their investment. That will be nearly impossible when you have family members or friends living in your rental. You will have a harder time making money on your investment.
Screening and Collecting Rent
It can be difficult to stick to your screening process when you have a family member or a friend moving in. You might also struggle to charge them the market rent. It’s not a good idea to simply let them pay what they can afford or to let them move in without checking their credit, income, and criminal history.
Professional Property Management
Many times, a landlord will call a property management company after the situation has already spiraled out of control. A sibling living in the property stops paying rent or the friends who live there aren’t following the lease. In some cases, landlords won’t even sign a lease when family or friends are in the property. These are emotional relationships and not business relationships. A property manager can create a buffer and take care of the difficult things that are too uncomfortable for you to handle. If you are going to rent to family or friends, start with a professional property manager so that you won’t have to worry about things like rent collection, lease enforcement, and other difficult parts of being a landlord. Your manager can run your home like a business and protect your interests.
Contact Terra Residential Services in Houston if you have any questions about what it takes to rent to family members and friends.