Leu Real Estate in Folsom
Leu Real Estate in Folsom
Leu Real Estate in Folsom

A Conflicting Position

Can My Tenant Be My Friend?

Both yes and no are the answers to this question.  You always want to be professional and be able to ensure that the tenant follows the lease contract, and any familiarity with your tenant should not interfere with this.

According to those specializing in the field of human behavior, psychology, and marketing, it is better not to lease to friends and family.  Your established relationship with them could completely change when a relationship is reduced to financials.  For example, if you had a relative that was going through a financially difficult period in which they are struggling to meet the rent payment, you may feel tempted or even pressured to show leniency because of your relationship with them.

It is a socially implied role in society to help and accommodate friends and family, however, this is inappropriate in a Landlord-Tenant relationship. 

Leu Enterprises in Folsom, CA

Folsom Real Esate and Property Management

Your Key to Great Service

Folsom Office:

1750 Prairie City Road Ste 130-251
Folsom CA 95630

Direct: (916) 933-4995
Fax: (916) 933-4999
Email: rentals@leuent.com

BRE Licnese Number: 01860066

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Your established relationship with them could completely change when a relationship is reduced to financials.  For example, if you had a relative that was going through a financially difficult period in which they are struggling to meet the rent payment, you may feel tempted or even pressured to show leniency because of your relationship with them.

It is a socially implied role in society to help and accommodate friends and family, however, this is inappropriate in a Landlord-Tenant relationship.  In order to collect on rent, you may have to sever or strain your personal connections, which is not a positive personal or business situation when you are running a business and need to work with tenants in an objective manner.

When you do not have a prior relationship with your tenant, you can set rules and parameters for a proper business relationship.  As landlord and tenant, you most likely will have a lease agreement with terms defining what the landlord and tenants can and cannot do.  You may also have to run background checks on prospective tenants including family and friends if you are already doing this on other tenants.

Equal treatment and screening of all applicants is required by fair housing laws, and you could find yourself under legal scrutiny if you do lease to family and friends.

Being on good terms with a tenant is good marketing and practice for retaining rental property tenancy.  The relationship between a landlord and tenant may look like a friendship, but the tenant is aware of what is expected of them from the start and will be less likely to rely on friendship for special treatment.   A landlord should be cautious of allowing the relationship to become unprofessional as this compromises the ability to manage the property effectively and smoothly.  Ultimately, the person is still your tenant and must be held to the terms of the contract.

Socializing with your tenant outside of work is strongly advised against as long as the tenant is in a lease and living in your property.  If you choose to pursue a friendship with a current tenant, you must remain aware of your responsibilities as a property manager.  A true friend is not going to put you in a conflicting position or jeopardize your business.