Renting to Family

[Mongruella]

Hello,

I apologize as that I have absolutely no idea where to find the answers for these questions, and I've been "google-ing" all day to no avail. Currently, my father owns a house that was "For Sale as Is." He's been restoring it for the last 15 years, and is still far from being finished. Anyways, due to illness, he can no longer work on the house himself and would like to rent it to me to complete and then later purchase (when I can afford it), and purchase a smaller house already complete for himself to live in. To give you an idea, the house WILL NOT pass an inspection, due to sinking floors and un-completed wiring. We were wondering if there was any way he could rent it to me, as that I am his daughter, in its current condition, and then in 2 years, I will be able to purchase it from him. I myself, am well able to do the work on the house. Also, what would we need to do in order to do this all legally, if that's even possible. My dad is a real stickler for going by the books, but we have no experience in this area at all. He would like to see the laws/regulations himself, so if you have a website link or something, even better! Thank you.

 

[vraiblonde]

Does he need to prove he's renting the old house out in order to qualify for a loan on a new house?

If not, it should be no big deal and no legal stuff involved. The legal people and state may tell you different, but they just want to nanny you and extract money if possible. You just live in the house, and pay your dad the agreed upon rental amount, and it should be nobody's business but your own.

 

[quailridge]

If you are going to pay the rent out of your own pocket, then there should be no problem. Have a Rental Agreement that states that you are renting the property "As Is" for the period of time wanted. Put everything in writing as to the specifics of the agreement between you and your father and then sign it. That is all you need.