Posted on: 15 December 2015
If you have rented out your property to a friend or family member, it can be hard to manage both the tenancy and the personal relationship. Here are some tips to make sure that everything goes as well as possible.
Get the paperwork in order
Before your tenant moves in, be sure to download the standard template for tenancy agreements from the department of housing in your state. Use the process of signing the agreement with your tenant to discuss and formalise the expectations you have. This includes the amount of rent you expect per week, and the process to pay the rent as well as expectation on how the property will be maintained. This is also the time to discuss any inspections you will do on the property. It can often be a great idea at this point to take some photos of the property to agree on the initial state of the property, in case there are any disputes over the property condition at the end of the lease.
Perform regular inspections
Even if you are only leasing the property for a short time, make sure to do regular inspections on the property condition. This can often help you to find issues when they are still small and easily resolvable, instead of letting them build up.
Get landlords' insurance
While you obviously trust your friend or family member, they can still fall on hard times and struggle to pay rent or otherwise damage your home. Insurance can make sure that you are not out of pocket if something does come up and can help preserve the relationship if something unexpected arises and your arrangement no longer works.
Consider outsourcing your property management
It can often be more effective to have external property management. Property managers are experienced in assessing property condition and managing repair requests. They can perform many of the standard jobs of property management including property inspections and bill payments quickly. Having a neutral third party handle property inspections and late rent payment can be much easier on you personally, as you won't need to discuss these delicate matters with someone you know well.
By planning ahead and assessing the possible risks of renting your property to someone you know well you can have a successful property management experience. Outsourcing your property management can be a good way to maintain your personal relationships while having a successful investment.Share