Anonymous
Post 07/02/2022 18:12     Subject: How to make up rent difference
Anonymous wrote:I’d love to rent my relative my rental condo. However it rents for $2000, all of which I need in order to cover my expenses. She could only afford to pay $1400. She has a good job but it’s low pay like 50k think entry-level NGO type. Are there any programs that would be available to her to help close the gap? Trying to brainstorm as best I can, she wouldn’t need the parking space so I could try to rent that out separately, but I doubt it would rent very well due to its location. TIA!


She can get a second job like many other people who can’t afford their rent. As someone else said, this isn’t your problem to solve.
Anonymous
Post 07/02/2022 18:03     Subject: How to make up rent difference
Anonymous wrote:
Anonymous wrote:Sometimes it's worth taking a loss to rent it to someone you know and trust


Agreed. This is what I’d recommend, esp if it’s just for a year. You eat the difference.


Yikes, OP, don't do this. $600 for 12 months is $7,200. Don't eat that kind of money. Your relative needs to find a place to live that she can afford. And you, OP, need to find a tenant who can afford your rent.
Anonymous
Post 07/02/2022 17:58     Subject: How to make up rent difference
Anonymous wrote:Sometimes it's worth taking a loss to rent it to someone you know and trust


Agreed. This is what I’d recommend, esp if it’s just for a year. You eat the difference.
Anonymous
Post 07/02/2022 17:38     Subject: How to make up rent difference
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:Why would government cover for her lifestyle choices.


The government covers a lot of different peoples poor lifestyle choices. She at least is hard-working. She will be working full-time during the day and then going to school in the evenings. It’s only a one bedroom. I’ve considered trading it up for a two bedroom in the same neighborhood, but I think it will take me a while to get that going.


What is the market rate for a typical 1 bedroom apartment in the area?

Can't she reduce her other expenses so she can pay full rent? I certainly did when I was in college and working full time--cut down to 2 meals per day (one of which is beans and rice,) no cable/netflix/hulu. Handwash/hang dry clothes instead of going to the laundromat, etc.






That’s not going to make up $600/month.


OP this isn’t going to work unless she also gets a PT job and/or roommate. But it sounds like she already has a full schedule.


I guarantee you she is spending more than $600 on food each month-avocado toast and lattes.
Anonymous
Post 07/02/2022 14:48     Subject: How to make up rent difference
No, there are no gov't programs for her. She can not afford this. You can not afford to rent to her. It was a nice idea, but it's not going to work.
Anonymous
Post 07/02/2022 14:48     Subject: How to make up rent difference
she makes too much money to get any govt assistance. My advice is that don't rent it to her. She wouldn't be able to pay and then you would have difficult time in getting rid of her.
Anonymous
Post 07/02/2022 14:44     Subject: How to make up rent difference
If you cant give discount, she can rent somewhere affordable.
Anonymous
Post 07/02/2022 14:37     Subject: How to make up rent difference
Would you sell her the condo? Cut out the realtors. Great first time home buyer programs will help with closing closts, smaller down payment, mortgage credit on taxes.
Anonymous
Post 07/02/2022 14:31     Subject: How to make up rent difference
She can take a small loan or you two can draw a personal loan between you.
Anonymous
Post 07/02/2022 14:29     Subject: How to make up rent difference
If she is taking care of your property, it s usually 10% of rent saved by not having a property manager.
Anonymous
Post 07/02/2022 14:26     Subject: How to make up rent difference
Anonymous wrote:If you have a mortgage in unit your monthly principal part of payment is not a cost.

But why does cost matter? I owned a place only costs me $800 a month and market rent is $2,400. I have no mortgage.

I gladly take less of market in this situation. Maybe even rent it 2k a month. But my cost is irrelevant.

What if my cost was 3k a month


Well, money stuck in property is money you cant invest so still a loss if renting at below market.
Anonymous
Post 07/02/2022 14:24     Subject: How to make up rent difference
Your relative needs to find a place she can afford, or you rent to her for 1400. Government rental assistance programs mostly, are for women with kids or families. In MC, there is a waiting list but they haven’t accept new application for 8-10 years.
Anonymous
Post 07/02/2022 13:43     Subject: How to make up rent difference
If you have a mortgage in unit your monthly principal part of payment is not a cost.

But why does cost matter? I owned a place only costs me $800 a month and market rent is $2,400. I have no mortgage.

I gladly take less of market in this situation. Maybe even rent it 2k a month. But my cost is irrelevant.

What if my cost was 3k a month
Anonymous
Post 07/02/2022 13:36     Subject: How to make up rent difference
Sometimes it's worth taking a loss to rent it to someone you know and trust
Anonymous
Post 07/02/2022 13:35     Subject: How to make up rent difference
It doesn’t sound like a good idea because even if she does figure it out, she’s very close to the financial edge and you say you need the money. If she has an emergency and can’t make the rent, would you want to evict her? Probably not if she’s your relative, but you say you need the money, so…how would you deal with this?