Buying a condo as investment and renting to our daughter
Good Day
Our daughter currently rents her condo – $1450 a month. The owner decided to sell it. My husband and I decided to buy the condo and rent to her. We are at the point of the formal closing.
Should we have a formal lease between us and our daughter? Of course, if she doesn’t pay the rent we will be eating the cost of the monthly mortgage payment. She could not get a mortgage.
We’ve had to co-sign for the purchase of her car.
Also – I cannot find a tax accountant. I live in Orland Park, IL. Do you have suggestions?
Thank you.
Terry Says
You should definitely have a written lease. And you can use your lawyer, who handled the closing. Or a standard lease template, such as one found here at Law Depot.
That way, if your daughter defaults, you can write off any losses. (That would require you to “sue” her for back rent — which would go on her credit report!)
But just having a lease should impress the importance of prompt payment on your daughter. Does she need some credit counseling? Call 800-388-2227 for the National Association of Credit Counseling.
Remember that you cosigned her auto loan — and if she defaults on that it will impact YOUR credit record!
To find an accountant near you, contact your Orland Park Chamber of Commerce, or ask at your local bank branch.
