Renting to family or friends.
Renting to a friend or family member can be a minefield. Here's a few thoughts to help you navigate, so your relationship stays intact.
1. Set clear expectations
Your investment property is not just a spare one you have lying around they can borrow indefinitely. They need to know that there are expenses for you regarding the property, and therefore they need to treat the commitment the same way they would if the landlord wasn’t a friend or family member.
2. Formalise the agreement
All tenancies in SA are governed by the Residential Tenancies Act. We recommend you never put a tenant into a property, without having a written agreement setting out the terms and conditions of the lease.
3. Take a bond – and lodge it!
This is a standard within the industry. Take the maximum bond permitted under the legislation. If anything goes wrong during the tenancy – you’ll be glad you did it.
4. Complete an ingoing inspection report, and conduct regular routine inspections
At the end of any lease term, having a written record of the condition of the property is vital. Without this, you can’t hold any occupant liable for any damage over fair wear and tear.
5. Get everything in writing!
So, your friend wants to paint and promises to “do a good job”? A quick written agreement on who will bear the cost, what colour paint, and who will pay if there are any unforeseen issues (think paint tin spilled on the carpet), can save from an argument that might damage the friendship.
A professional Property Manager is always an asset, and never more so when renting to a friend or family member. We act as a go between, ensuring that all parties meet their obligations. Simply refer any matters to your Property Manager, and avoid any difficult conversations about late rent, overgrown gardens or outstanding water invoices, so your friendship remains intact. Call our office on 8288 7885 for all your property management needs.