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Anonymous asked in Business & FinanceRenting & Real Estate · 1 month ago

Not sure what to do want to help my friend but...?

So my friend just got divorced and my husband and I are moving this May. We are asking him for 900 month for our 2BR 2BA townhouse. Average rent is running around here is 1300 - 1400 so we are trying to help him out plus we are hoping to make a slight profit. He just told us he can only afford 750 per month maximum. I don’t know that we can go that low. If we rent, we would have to pay taxes on that money plus we pay 300 for our HOA. We don’t know what to do we want to help him but at the same time we would likely not make any money. 

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  • 4 weeks ago

    It sounds like you will unfortunately not be able to help out your friend with your property. Your rock-bottom price is $900. You already offered that and he has told you he can't afford it. That should end the discussion. 

    There are many ways to help someone out that don't involve allowing them to stiff you on rent. Stick to your price. That's really all you have to do. If you can't accommodate, don't let friendship get in the way of that. 

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  • 1 month ago

    Do you have an actual question?

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  • 1 month ago

    If you can't afford to rent to him at that amount - tell him that. Give him a minimum rent you can go to, and it's then up to him to confirm if he can afford it or not.

    IF you end up renting to him, make sure you have a lease IN WRITING.

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  • 1 month ago

    I bet he's trying to take advantage of you. He could afford $900 but he figures he can talk you down to $750, because lets face it - you've got sucker tattooed on your foreheads.  If you turn him down and say he'll have to rent to something else, I'll bet he will come back and say "gee, I guess I could afford $900" - but I also suspect he'll stop paying rent at some point and whine about how this is so terrible but gosh dangit, could you just float him for a few months and then he'll be caught up (up he'll never get caught up, its just a matter of how long it takes you tofinally evict him). 

    At this point I wouldn't rent to him, no matter what, his asking for just $750 is an attempt to take advantage of you and if you rent to him at any price he'll take advantage of you again.

    Why don't you help out someone else and rent it to them for $1300 to $1400?  I'd also strongly suggest getting a property manager who knows what they are doing because you don't have any experience with this yet. I'd also advise, in the future, against renting to family and friends, no matter what, as they'll be far more likely to take advantage of you, figuring my good old buddies won't evict me, or do anything, if I don't pay the rent.

    Nice of you to want to help your friend, but this is a business, not a charity and you need to run it like one or just sell, don't rent. Also, friends and family are (in my experience) far more likely to take advantage of you (which he's probably already trying to do).

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  • 1 month ago

    tell him to find a roommate and each pay 600.

    do you also  have a mortgage?  even in NJ taxes on a property that rents for about 1400 would be about 500/month average (some towns more, some less).

    you also have to pay insurance...

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  • R P
    Lv 7
    1 month ago

    Experienced landlords do not rent to family, friends, or friends of family. It rarely (if ever) ends well for the landlord.

    Source(s): FL landlord
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  • 1 month ago

    I wonder if your friend understands what a humungous gift you were offering to rent at at $900?  They may not, so need to see what $750/mo will get them, but can't until you end your place as an option.  Leave the door open, but admit the fact that you can't go lower than what you offered.  You are also talking like an inexperienced landlord, because what you see is as a small profit doesn't include the maintenance you would be responsible for as a landlord or the time and trouble of doing landlord things.  Bottom line it doesn't matter if they are a friend or family, you can't let your tenant dictate the rent.  Your friend could go out and see the $750 options and surprise you with the ability to pay more.

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  • Maxi
    Lv 7
    1 month ago

    Being a landlord is a business relationship, it has nothing at all to do with friendship, so he can't afford to pay that much rent, so he can't rent your property........and to be very honest the last people you rent to are friends especially if you wish to remain friends

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  • n2mama
    Lv 7
    1 month ago

    I wouldn’t do it. Not only could this end up costing you money, being a landlord for a friend could put you in a lot of awkward situations. He tells you the max he can afford is $750, but what happens the first time he only pays $600 because “something unexpected came up”? Are you going to be a landlord, issue him a 3 day pay or quit notice and then evict him? Or are you going to be a friend, tell him that’s ok, and set a precedent for him to take advantage of you? If he damages your property, then what? Will you take him to small claims court and sue, or will you decide it’s more important to hold on to the friendship? 

    If he’s single, unless he has kids (which you don’t mention), he doesn’t really need a two bedroom place. A smaller apartment probably fits his needs and budget better. I’d be sympathetic to him, but tell him that we will be selling the house.

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  • 1 month ago

    Tell him to shop the open market, then come back and see what else he can find for $750 a month (probably just a room).  

    You can do whatever you want, its your property and you dont have the charge anything if you didnt want to...

    I dont think he is taking advantage, perhaps thats just his budget.  

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