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Old 07-30-2014, 10:02 AM
 
Location: St Thomas, US Virgin Islands
24,665 posts, read 69,567,744 times
Reputation: 26727

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Squirl, I know you're looking for examples from people who've done this and who've had it work out for them but the bottom line is that, statistically, the odds aren't in your favor. But your situation may well beat the odds! It worked out for a very dear friend of mine who extended the same to me when I suddenly went through a very bad patch - on the other hand I relaxed my rules as a landlord in another situation which didn't work out and soured me against doing it in the future. All you can do is protect yourself as best as possible, and I offered my suggestions on that score earlier in this thread. Good luck!
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Old 07-30-2014, 01:32 PM
 
Location: Simmering in DFW
6,952 posts, read 22,645,188 times
Reputation: 7296
Quote:
Originally Posted by 1insider View Post
OP if this doesn't turn out well, you still have the gratification of having done something good and given someone a second chance. If life has put you in a position to choose charity over business, kudos to you.

I loaned $2000 to a friend in a bind a few years ago thinking I probably wouldn't get paid back but knowing that receiving the $2000 was far more critical to his life at the time than losing it was to mine. Whadda ya know. Three years later I get a Western Union wire from the other side of the world for the $2000 plus interest. Faith in humanity restored.
Thanks for the hope! When I was just newly married I took a job at a big insurance company and paid an employment agency 1 month's pay in commission to get the job. 2 weeks into the job, they had a big meeting with coffee & donuts the first hour of work. It was a United Way campaign, and I stayed at my desk and worked because we were so poor, I knew I couldn't contribute. So poor that I had bought new shoes for $5 for the interview and now wore them to work every day. They had been on sale but were a size smaller than my real size and I suffered each day -- secretly removing them under my desk! And even with that discomfort, I was never in the situation of not having a place to live I could afford.

My supervisor called me in and asked what was going on and said our dept. head always achieved 100% participation and I must contribute. Because I couldn't do it, she took $5 (how ironic, I thought) out of her own pocket and put it in an envelope with my name on it and said I can pay her back. I never did; I wore those shoes a long time! That was in 1971 and that day I learned that generosity is indeed a luxury. And, today, in 2014 I am fortunate enough to be able to be generous..... So, here's hoping this works out. Like everyone else, my "luck" has mostly been the result of hard work, and I don't want to be a fool. I'll let you know what happens.....
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Old 07-31-2014, 05:15 PM
 
Location: Riverside Ca
22,146 posts, read 33,381,488 times
Reputation: 35433
Quote:
Originally Posted by Squirl View Post
Well, I know its not the model for renting. I am wondering if anyone, anyone has had this turn out ok. I long ago learned never to lend anyone money unless I was prepared never to be repaid.

And, in this case, I am prepared for the worst and can sustain the loss if it comes to that. Life has been very good to me, and as a single mom I had an education and the safety net of family who always had my back. So, this gal has none of those things but has managed to stay in college full time for 3 years while working full time.

I may get kicked in the teeth on this one. And I don't view this as part of my rental biz; I guess its my swan song to being a Landlord as retirement is around the corner......

But, has anyone ever done something similar and it turned out well?
In the 20 some years I've been a LL I have given a few people a break. In the end they don't care. I revamped my whole acceptance policy. I don't sway from it any longer no matter what the story is. Oh and I simply DO NOT rent to friends or family.
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Old 07-31-2014, 05:51 PM
 
28,455 posts, read 85,157,040 times
Reputation: 18726
If you are really into this for a year and nearly $5000 on this situation why not just gift this person the money and let them rent a cheaper place?

My gut says you know if you gifted them $5k you know deep down that they would NOT use it wisely...

While I hope this works out at least "not horribly" I would mentally and finaicialy prepare for "the worst" as in the aprartment needing a complete overhaul AND eviction ...
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Old 08-02-2014, 09:37 AM
 
85 posts, read 332,476 times
Reputation: 63
There are potentially negative tax consequences for renting to relatives/friends (or others) at below market value. Check out this article.
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Old 08-02-2014, 09:56 AM
 
Location: Simmering in DFW
6,952 posts, read 22,645,188 times
Reputation: 7296
Quote:
Originally Posted by chet everett View Post
If you are really into this for a year and nearly $5000 on this situation why not just gift this person the money and let them rent a cheaper place?

My gut says you know if you gifted them $5k you know deep down that they would NOT use it wisely...

While I hope this works out at least "not horribly" I would mentally and finaicialy prepare for "the worst" as in the aprartment needing a complete overhaul AND eviction ...

Why overhaul? I can see the possibility of eviction for nonpayment of rent. And that's the chief concern. You are exactly right; I wouldn't give or even lend this gal $5K out of the pretty strong suspicion that she would not spend it in a way I consider wise.

I mentioned in my OP, I was a guest in this gal's homes every place she lived in. And always beautifully clean and decorated. I did fail to mention, because I didn't want to burden the post with minutia that she is a former property manager for a number of apartment complexes and is very sensitive to move-out/move-in conditions. I do know that when we have to cut to the chase we leave out other factors that play into decisions. I didn't ask for security deposit because the apartment was left very dirty by the former tenant (who lost his security deposit over the mess he left behind) and she got the condo in the condition left by that tenant. It is has been cleaned by her and looks good now. Sure hope she continues to pay rent (got rent yesterday)
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Old 08-02-2014, 02:24 PM
 
548 posts, read 1,035,615 times
Reputation: 970
Well I am not a landlord. However, when my husband and I were very young with a baby we had no place to live and a friend who had a place to rent let us live there for free for 6 months. We didn't ruin her house. We moved on when we were on our feet and she was able to sell the place. I realize most people aren't like that. We also are not felons and had no pets at the time. But we were young and had no credit and a baby.
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