Home News Renting to people you know

Renting to people you know

Font size :

Q. I have an investment property which is currently tenanted and the lease will be ending in a few months. My brother and his partner are looking for a place to rent and I am thinking of renting my property to them. Are there any restrictions with renting to family? Do I still need the formal paperwork?

 

A.  Renting your investment property to family and friends may seem like a great idea, but it can often end badly if you don’t take the agreement seriously.
You can offer a discounted rental fee if you wish, but remember that if you need to raise the rent down the track, you will have to follow the proper process which includes giving enough notice. The formal tenancy agreement is put in place to not only protect the tenant, but you as well. As you know each other, you may turn a blind eye if they miss a rental payment or they may even take advantage of the situation and become unreliable with repayments and not care for the property either. This rental agreement is a safety net for both of you in case things go south.


You may find that a property manager will be extremely useful in this situation as they are an outside third party who can handle landlord responsibilities such as conducting inspections, chasing rental repayments and dealing with any conflicts that may arise.


Even though you may know the tenant, you should still treat this agreement the same as you would with any other tenant.

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Mortgage News and Articles

To break monopoly, many smaller lenders could become banks To break monopoly, many smaller lenders could become banks

The proposed change could break the Big Four’s monopoly over the mortgage market and help families get cheaper home loan rates Read more

Borrowing against the home: A strategy to pay for aged care Borrowing against the home: A strategy to pay for aged care Such debts can generally be divided into long-term and short-term loans ... Read more

NAB slashes growth forecasts for houses, units NAB slashes growth forecasts for houses, units Numerous factors, including tighter credit rules and the growing supply of new stock, have reined in Australia’s seemingly unstoppable housing market boom ... Read more

Broking industry wants to reform commission structures Broking industry wants to reform commission structures It argues that scrapping commissions altogether would push up the interest rates paid by consumers ... Read more

More mortgage news and articles

Sponsored Links

Friday, Jul 21, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Whether you're a first homebuyer, looking to refinance, or investing, it's important to have the right loan for your needs. Just fill in a few details below and one of our trusted mortgage advisers will contact you.

A quick & easy way to find the right home loan
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords