Grit dog wrote:
DTA has some good points, but "gigantic legal trouble" is a stretch.
The role of an attorney is to offer advise and solutions. I can tell you that turning your home and personal property together into a part time rental that you live in some and rent some is a recipe for legal problems, especially if a major problem develops, or the tenants know how to game the processes.
Here is an actual case: The tenant falls down the basement steps because the light bulb was burned out. The landlord knew or should have known the bub was old and subject to failure. The landlord knew or should have known that a fixture with more than one bulb would prevent dangers until repairs could be made (replacing the bulb). The tenant can no longer work because of injuries. The landlord was found negligent and had to pay the tenant his projected earnings for the rest of estimated life plus medical bills and an amount for pain and suffering. The settlement was in the tens of millions of dollars and was above the landlord's policy limits, but since he was a real estate investor, his net worth was substantial so he had to dissolve his holdings to pay.
I call that a gigantic legal problem. Extreme, yes, but it illustrates the potentials.
More realistically, the tenant refuses to leave the premises after the term is up and/or does not pay. Eviction is the only process to remove them from the premises. That process can be quick and easy or frustratingly long and expensive, depending on the state. The tenant claims your personal property is actually his, and the landlord failed to inventory accurately and legally the personal property in the home. It will take a Court Order to make the determination who owns what. Most attorneys get about $250 an hour. Believe me, you can eat up a lot of money quickly.
None of these are "gigantic legal problems?" I will let the readers of this forum decide. The potentials are great, if the rose colored glasses are removed.
