Renting to a Friend: A Seemingly Perfect Plan

When I first became a landlord, I had no idea what I was in for. I had just purchased a house, which meant I needed to rent out my condo. As luck would have it, a friend of mine was looking for a place to live. It seemed like a perfect arrangement—helping a friend out while also ensuring my condo was occupied. Wanting to be generous, I offered a discounted rent, thinking it would be a win-win.

The Problems Begin

Unfortunately, things didn’t go as smoothly as I had hoped. Not long after moving in, my friend invited more people to live in the unit, quickly exceeding the occupancy limit of two people per bedroom. I wanted to be understanding, but this was a clear violation of the lease terms. Then came the rent issues. Payments were often late, and every month seemed to bring a new excuse—job troubles, unexpected bills, banking errors. I wanted to believe them, but the pattern became clear: paying rent on time was not a priority.

A Costly Mistake

Eventually, the situation became unsustainable. My friend couldn’t afford the rent at all, and they finally moved out—but not without leaving a mess behind. The condo was damaged in ways I hadn’t anticipated—stained carpets, holes in the walls, and a general lack of care for the space. To make matters worse, they abandoned a pile of personal belongings, leaving me to deal with the hassle of clearing it all out. It was a stressful and costly mistake, one that put a strain on both my finances and my peace of mind.

Learning from Experience

Determined not to repeat the same errors, I took a different approach with my next resident. This time, I handled everything professionally—full market rent, a thorough screening process, and clear lease enforcement. The difference was night and day. The new resident paid on time, followed the rules, and treated the condo with respect. What had once been a constant source of stress became a smooth, reliable rental experience. I’m glad I didn’t give up after the bad experience and decided to rent to someone else. Over time, the condo increased in value and became the foundation of my rental portfolio.

The Moral of the Story

Mixing business with friendship can be a dangerous game. While it’s natural to want to help a friend, being a landlord requires professionalism and clear boundaries. Offering discounts, bending the rules, or ignoring red flags for the sake of friendship can lead to financial loss and unnecessary stress. If you’re going to rent out a property, treat it like a business from day one—your future self will thank you.

About Rentals America

Rentals America provides full-service property management for residential rental properties. Our team is completely dedicated to property management and we’re here to help landlords navigate the rental market.