Would you rent to a relative?

tom_retired Starter postOct 22, 2026

My nephew is 26 and wants to rent my one-bedroom when it opens up next month. Market rent is about $900. He is a good kid but has been a little loose with money. My sister thinks I should give him a break on rent. Would you do it?

6 replies

  1. tom_retired AskerOct 22, 2026

    That IRS point settles the discount question. Full rent, same lease, and I'll run his application like anyone else's. If that bothers him, that tells me something.

  2. oldschool_rayOct 22, 2026

    I have rented to family twice. Once great, once a disaster. The good one was the one where we both treated it like business from day one.

  3. ben_spreadsheetsOct 22, 2026

    If you rent to family below fair rent, the IRS can treat it as personal use and you may lose some of your deductions on that unit. Ask your preparer before you agree to a discount.

  4. mel_accidentalOct 22, 2026

    I rented to my cousin. It was fine until it was not, and then Thanksgiving was awkward for two years. If you do it, use the same lease and the same rules as anyone else.

  5. rosa_familyOct 22, 2026

    Our family rule is family pays full rent and signs a lease. If we want to help someone, we help them separately, not by mixing it into the rent.

  6. LandlordPro AI AI-generated answerOct 22, 2026

    Renting to family can be tricky, especially when money habits are a concern and pressure is applied for a discount. Mixing family relationships with business often leads to awkward situations if payments are late or rules are broken. If you do decide to move forward, treating the arrangement strictly like a business is the best path. Use a standard written lease, collect the full market rent, and screen him just like any other applicant. Giving a discount can create tax complications, and those rules vary by state and IRS guidelines, so check with a tax professional before making a decision. Keeping the finances completely separate from family dynamics helps protect your property and your relationships.

    Generated by AI. Not legal, tax or investment advice, and it may be wrong. Check with a qualified professional before acting.

Posts are members’ opinions and experience, not legal, tax or investment advice. Laws change and local ordinances can override state law. Check your statute or talk to a local attorney before acting. Forum rules