I've been down this road previously and it didn't work out. I had a family member who has hit a rough patch mainly due to their own decisions. They've been staying in hotels and needing money even for that which I've lent. Basically, they're not rentable so their only option is ST rentals or hotels. Being in an apartment would allow for stability (two children are involved).

This person has a degree in a field that's in high demand but has chosen to become a psychic. They don't want to have anything to do with "the system", yet they've used that same system to overspend on cars and live in expensive Airbnbs and etc. They're also borrowing money from someone who's a part of that same "system" they detest.

After thinking about it for awhile, I decided to offer an apartment but the lease was to be m2m and accompanied by a memorandum of understanding. The MOU laid out two main requirements: 1) Get a full time job paying 3 times the rent and 2) develop a plan and take steps to raise their credit score to at least 650. The threat was that if there was non compliance with the MOU, the lease would be nonrenewed. (Lease and MOU were separate documents)

The idea was to make this person rentable and not reliant on me renting to them by setting expectations up front. In other words, you're not going to take the apartment and continue the same mess that put you in the boat you're in now. If you CAN'T DO due to illness or infirmity, that's one thing, but I'm not trying to sign up to help you with things you WON'T DO,

Guess what? The MOU smoked them out. They had no intentions of trying to clean up their act and refused to sign it. I refused to rent the place to them as a result and told them no more loans from this point forward. The fact that I had to negotiate over them cleaning up their act and memorialize this in a document is problematic anyway. Anyone serious about taking corrective action would be vetting and bringing their own plans.

I'm just venting, however, I'm glad I approached it this way and forced them to screen themselves out.

You are far nicer than i would have been.this person hates you for your success and just wanted to take advantage of you

You did way more than I would have.

You dodged a bullet. Once you have a deadbeat relative in your rental it is a monthly gift to them...then it is an entitlement.

I checked Amazon, you can't buy luck.....but you can create it. They are electing not to create it.

I feel bad for the kids.

They need a lot of good influence from "regular" people - like yourself.

I hope you are able to give that to them.

Richard beat me to the psychic joke!

I rent to my MIL. She is why we started in this anyhow. No big problems from her.

Rented to a cousin who refused to accept the house as a stepping stone away from her mother's place. She has three kids and was living with her mother in a multi family situation. It did not end well as she expected handouts. We ended the relationship badly. I am not sorry because she caused it all.

Now I have another cousin who is working out in a rental. She escaped from her ex because he was getting a bit too hands on. He had no idea about this part of the family. She is actually buying the property from me.

Do I wish she would do things differently? Yes. Does she pay her bills first? Yes. Kudos to her.

I have one or two relatives where I would take the risk and rent to them, but they are the type of people who are successful because they work hard and are careful with their budget, so I can't imagine them ever needing to rent a house from me.

I stopped reading after "living in hotels"

We must learn from our previous mistakes. It won't work out well this time either.

I rent to my daughter who pays about 1/2 what I'd get from anyone else. I actually pay the other half. She complains more than the other tenants of wanting things done. but we can do what she asks generally she may just have to wait sometimes.

Lucy, I still say if her rent is half there is no need for you to pay what you consider to be market value.

If she says there is stuff needing done then use that as your reasoning for her not paying market rent.

I know of nobody personally who has been hit for getting under market rents from anyone. Maybe someone will correct me?

When I rented to both of my kids it was just the opposite regarding complaints. They got a little below market rents and knew it. So they would allow small things to pass. This was not because I suggested it as I wanted to keep the places up to standards. They just realized what rents and conditions could be in the outside world.