Supposing, this is merely hypothetical, you rented commercial premises to your brother . . . it's a bad year for business and you know it. He's always talking about how bad business is. So supposing he fails to pay his rent on time, would you hand him an eviction notice? Or maybe haul him to court so he can pay the money owed? I don't think so. You'd, in such a case "understand" and lose that money simply because he's family. But would you do the same for someone who isn't related? Wouldn't you make them pay the last penny they owe? That's why it's always better to have business dealings with people who aren't related to you.
That is why it's not exactly business, we lose the source of our income from the moment we rent to family. I mean, they might pay or not and what can we do?
I would never rent to a family member. For some very fun reason, whenever you rent to a family member they seem to think they can skip out on the payments at will or they seem to want to use that as a defense if they don't have the money to pay the rent. What isn't considered also is the fact that you have a mortgage on the property which means the mortgage company is expecting you to satisfy the payment as you would from them. I'd rather not deal with the headache.
And it's not just family one shouldn't rent to. Friends can also be a problem. I once lived in a flat where and the owner of the building had rented out some of the flats to his friends. They never paid rent on time and since he was a good friend, he always was patient. They did pay eventually but supposing as landlord you depended only on the rent as your income? Wouldn't you be compelled to evict the friends or family? Bette to rent to either of them because this will at least save your ["cordial"] relationship.
There is a quote i normally see at my regular store; "I understand, am your friend and you are my friend but guess what my business doesn't know you, kindly pay up!"...that would sum it up quite well...don't you think?!
It should but doesn't most of the time. Well a real friend wouldn't want to "use" you but supposing he falls on hard times? Wouldn't they remind you that a friend in need . . . and maybe if you aren't that callous you'd say you "understand" and hope that they'll eventually pay the rent they owe.
Oh man, doing business with family or friends is generally not a great idea. If things get messy then nobody wins. I personally have a rule never to lend anymore than $10 to a friend, and I pretty much consider that cash a gift to them. Saved me a lot of grief
The same logic should be applied when renting to friends or family. Nonetheless I think that most people won't try to use friendship or kinship as an excuse not pay their rent. While it isn't advisable, if you trust that the family member you are renting to is trustworthy then why hesitate? No one's dollars are greener after all.
Well, you probably wouldn't lose the money, because they would eventually pay it back, but you would probably cut them some slack and allow them breathing room to pay. It's quite reasonable to tell them they have to leave, although again, you'd give them even more notice than you would a tenant.
It sucks trying to rent to family members because they expect you to cut them deals. While you want the absolute best for your flesh and blood, business is still business. If they get slack on their rent, they should not get special treatment. It sucks and it is a harsh reality that every renter has had to deal with at some point and time.
