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I agree with the others - just put your foot down and say NO. It's illegal, you'd have no lease - that is just asking for trouble. If your wife wants to be charitable, she can donate to a homeless or women/children shelter perhaps.
I had not thought about the insurance issue. That is something to look into.
In order to separate the dogs it would require cross fencing and with the way the driveway runs it would have to be a tiny portion of the yard. She actually suggested this. I don't know where the money would come from-the only place it could would be our emergency money or investments. She actually asked me the other day if we did not have the dogs would I feel differently. We both love the dogs but for her to imply restricting their yard space simply to rent the guest house under these circumstances is crazy and way out of character.
She seems to think that since we can't have a lease we would have to rent to people we know-and it would all be puppies and rainbows since we know them.
While our daughter (now 29) was in the house she would periodically ask if one of her friends could rent out our spare bedroom (in the main house) until they "get on their feet". My response was always the same: "We are not running a homeless shelter". Mom would have allowed this, but luckily always deferred to me.
An illegal contract is not enforceable. This could result in so many nasty scenarios.
Tell your wife it would be like feeding feral cats in the back yard. Now it's cheap rent, then it's no money for rent, then it's can they borrow some food, then will you watch my kid...
Let alone the dogs, potential noise, who knows who they would let move in, cars all over the place. Building inspectors...
Sooooo many reasons not to do this.
How about you and your wife sit down with a notebook and put a line down the middle of a page, put pros on one side and cons on the other...
She sounds like a kind soul - and a real target for losers. Good thing she has you .
I suggest you get out to your guest house tomorrow AM and start turning it into a workshop / man cave before your wife has a chance to do anything else with it. Bring out your power tools, every piece of wood you can find, wrenches and nails,etc. Tell her it's all yours now and you are going to use it for yourself. Start a project even if it's just an elaborate, custom, totally unnecessary dog house.
Something weird is going on with your wife. Very few people would be willing to give up their dogs to rent an illegal guest house below market rent.
What part of illegal does your wife not understand ? Does she realize the potential impact that could have on your insurance just in general or if someone renting got hurt and sued you. What happens if the town finds out and issues you a cease and desist order. Then what happens when you can't evict the tenants and the town starts fining you by the day.
Someone has to be the adult in this situation. Right now it's not your wife. Just keep saying " no", before you wind up in a financial and legal mess.
Basically your wife has too much time on her hands. She wants to do good. She may miss having the mother there. The fact that she wants to rent to someone she knows for cheap may indicate she is feeling lonely. However, you can't let her wreck your property and finances with some screwy scheme.
Maybe your wife needs a hobby. Work on it with her. Get her used to being away from the house without you. She needs lady friends, things to do with them, volunteer work, etc. Her loneliness has to be fixed off site, not by illegal tenants with no money who will ********* over for sure.
Suggest your wife volunteer for a charity or homeless shelter if she sincerely wants to help the destitute. The idea of renting out your guest house should be a non starter for innumerable reasons already mentioned.
She seems to think that since we can't have a lease we would have to rent to people we know-and it would all be puppies and rainbows since we know them.
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The whole idea is idiotic, and especially renting to people you know. PLEASE have her read several,pages of posts in this forum. And when she says, "the people we would rent to wouldn't ever do that," tell her every poster thought that way going in.
The juice isn't worth the squeeze. You have a few things against you
Dogs can be a liability for you (biting or possibly attacking the tenant)
Zoning laws
Low rent price
I'm sure you know this but in order to do something it has to be worth something. The liabilities and risk outweigh the financial gains IMO. Hey I made a decision to never rent to friends or family. Pretty hard but IMO it's probably one of the decisions I made
Not sure if it's been said but your homeowners insurance may not cover you if something happens.
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