In this post, I want to give you a few reasons why I strongly feel you should shy away from renting to a group of friends.
Well, just to cut to the chase, I’ve done this several times…signed a lease with three or more people on it, and it’s never worked out.
Here’s been my experience of what went wrong, and why I strongly caution you to steer away from renting to groups of friends even if the applications and tenant screening results for everyone look promising.
FREE Real Estate Investing Checklist. Instant Access.
Fantasy turns into reality
A group of friends hanging out together at a bar may be a barrel of laughs, but put those same friends in a house together, and that barrel of laughs will quickly turn into frustration and bitterness.
Coordinating bathroom usage, delegating cleaning tasks, dividing utility bills and a host of other disagreements can quickly snowball into problems you’ll soon get dragged into.
Pets may get along fine with their owners, but bringing multiple pets who aren’t familiar with each other under the same roof, and you’re asking for trouble and possibly damage to your property beyond what a pet deposit would cover.
Too many guests
Each of those friends has their own set of friends along with boyfriends/girlfriends, so you get the idea. Your rental property is going to turn into something like this…
Fun for them, but not for you.
Someone ultimately bails
When the quarreling and the disorder get to be too much, some of the tenants will bail, and some will stay, however, the ones that stay will not be able to afford the property on their own, and that’s when everything falls through.