Friend wants to be a tenant

Dear Dave,

I own a duplex that has an opening for a tenant, and an old college buddy wants to rent the apartment. He has always been a good friend, but I’m a little worried about the possible effects on our friendship if business is brought into the picture. Do you have any advice?

— Justin

Dear Justin,

You can make this work, but you’ll both need to be careful. It’s going to take a lot of honesty and maturity from you both.

Doing business with friends always comes with the risk of running into a situation that can damage the relationship. Am I saying never do business with friends? Of course not. I do a lot of business with friends. I just make sure all the specific requirements and expectations of the business relationship are laid out in clear detail in writing and fully understood by both parties before a deal is struck.

Sometimes friends have unrealistic expectations when it comes to doing business together. The friend who’s renting may think the friend who is the landlord will give him a pass if the rent is late and on a dozen other things. The friend who is the landlord may think the renter will be a perfect tenant because they’re friends and find out the hard way his buddy’s a slob who doesn’t respect and take care of the property. All these things should be ironed out ahead of time and before the agreement is signed.

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