renting out apartment in one family residence
we recently bought a one family house, with a garden apartment that is set (kitchen and appliances). our deck is not up to code and so we can’t change our c of o. how risky is to rent the apartment? what kind of legal arrangement can be drafted? nightmare experiences?
we recently bought a one family house, with a garden apartment that is set (kitchen and appliances). our deck is not up to code and so we can’t change our c of o. how risky is to rent the apartment? what kind of legal arrangement can be drafted? nightmare experiences?
Someone asked the same question awhile back… Here is the array of responses received. Below is the link to the archived question
http://brownstoner.com/forum/archives/2007/03/illegal_apartme.php
If you’re not legally set up to take on a tenant, then you’ll be taking on a considerable risk.
One nightmare experience is a friend that rented her apartment to a tenant who seemed like a wonderful man. 6 months in, he decided not to pay rent any more. She tried to sue to have him evicted. Well, after getting the case postponed for 3 months, the tenant then told the judge…”Well, it’s not a legal 3 family house” which is wasn’t. he remained in the house rent free for the next 14 months. When he was finally evicted by the Marshall, the landlord had no recourse to collect the past rent. Because it wasn’t a legal three family.