How much rent should I charge my friend to rent out my property?
I have a 3 bedroom home which sits on a large parcel of land. I also have the adjoining vacant lot right beside it. I have a friend that has moved in a semi trailer (not the semi just the trailer part) for storage and wants to rent the land from me. I said that we should sit down and talk about it when it is both convienient for both of us AND after we both have put some thought into it too. Well, a few months has passed since that conversation and due to some unforsean events (car wreck has left me unable to work) I could really use the money he should be paying for rent. I don’t have any problems bringing this up with him its just that I really don’t know what is a fair price to charge. Since moving in the trailer (which was the original deal) he has also moved in a couple cars, and the latest is a camper trailer which he now wants to live in. That means he would be tying in to my electric and my water. I just want it to be a flat fee and don’t want to bother with figuring out the difference in electric and water. So do you have any figures for me? Thanks in advance for your input.
This is in the state of washington. And yes, I know friends and money don’t always work out but it is already a done deal so I need to settle on a dollar amount. Any ideas??
Its been my experience that renting to friends never works out well. From what you have already written (ie moving in 2 cars and now a camper trailer) I forsee the adjoining lot collecting more and more of your friend’s stuff and you getting more and more irritated with being taken advantage of.
Money friends and family are like oil and water, neither mix too well.
You might find a local appraiser in your area, see if he is able to give you a rent cost for your area and what you would like to do. There might be a cost for this service, however, this would give you a basis to charge rent in your area. You are not required to charge top or bottom price but some place in the middle that you and your friend can agree on.
Make sure you sign some type of lease with the parameters of the lease to include any possible late rent.
Renting is a local area as if you are in California a 2 bedroom apartment would cost approximately $1,200.00 then if you would want to rent a garage in the same complex that would be an additional $75.00.
Where as the same apartment in Alabama or Louisiana would be approximately $875.00 to include the garage.
The same go with renting land, in certain parts of the country it is more expensive while in Tennessee the rental price might be a lot less than California.
I hope this has been of some benefit to you,good luck.
“FIGHT ON”
Yes, Renting to friends and family usually doesn’t work out.
It sounds to me and this friend has had a “Free ride” from you. I would look online at realtor.com and put in your city and state in the box and see how much other people are getting rent. I would then go down a little cause this friend has there own trailer to live in. But you must charge them. It is your right. You must make up a contract date it and have them sign it. In that contract it must say that he/she agrees to pay you $$$ amount on this day of every month. That it includes electric, and water. you need to set the specific things you want. Example no more then 3 cars on lot. Sounds to me like this Friend is using your land as a junk yard for his/her crap. It will be hard cause this friend has been living there for “Free” so far. But you must do this. However your friendship may change over time. As this friend is no longer just a Friend he/she is now a tenant. You are the landlord. You need to take control whether you had the car accident or not. You mentioned above that you tried to set up something with them to Talk about this? Did they blow you off? Or did too much time pass and everyone forgot about it? You need to tell them that you two need to have a chat about what the monthly expense will be. Don’t sell yourself or your property too cheap.
If you get totally confused and don’t know how to handle it call a local real estate agent in your area and ask them. Maybe they would take over the entire arrangement for you. That would be a lot less stressful for you as well. However you could have to give them a cut of the income.
Good Luck
Just a ball park price I would say $600-$700 /month
If this is a valued friend you should not do it. This will not work out in the long term. As you state, he is already taking advantage. Also keep in mind that this is not legal and you could end up heavily fined, even to the point of losing the land to the county with this.
If you are including use of land, power and water I would think about 2k a month, assuming he does not move anyone else in.
I don’t know american law but here in the UK we would have to seek planning permission to be allowed to use an empty piece of land for someone to place a trailer on to live in.Maybe your local councils have the same rules?
I would get this person to remove all their junk and apply for planning permission for your vacant land to be built on and then sell it on to a developer to get some much needed cash.