Question about renter paying a lump sum.

[ScrimpAndSave]

The person who is renting from me is a best friend. I am planning on finishing my basement and the fence in my backyard in the near future. She offered to pay for it (a total of $6,000) if I let her live there rent free for a certain amount of months. Should I put something into writing that if she moves out earlier, she doesn't get any portion of the $6,000 back?

Should I just make sure that I have enough to pay back the difference if she moves out earlier?

She just inherited $250,000, sold her house and wants to rent for a few years. She does not intend on moving out anytime soon.

This is crazy...I know! What do you think?

[LuxLiving]

ABSOLUTELY YES put whatever agreement you have in writing! You don't want to ruin a good friendship, so please be careful.

[ScrimpAndSave]

Yeah, I don't want to make any stupid mistakes. How do I put this in writing? Do I contact a lawyer? Thanks.

[LuxLiving]

I would think a standard rental agreement would be in order, the only difference being, she's paying up front. I'd just make sure something about it being non-refundable was worded in there - typical 30 day notice for both sides & stuff. I'd sign in front of a notary public at my c.u. or bank.

Not sure that I'd get a lawyer, but it might be helpful. Here in my state we still have stationary stores that sell blank legal documents, or you could google around to find one that closest fits your situation and key in ya'lls info. Nolo I think is one place online to get such forms for a price.

Not a lawyer, nor do I play one on TV - YMMV, etc. All standard disclaimers apply. Just protect yourself.

[MonkeyMama]

I agree, I would work out all the details with her, and get something in writing. I wouldn't utilize a lawyer. Though I don't think it would be a bad thing to do, I just don't think I would see the point, myself. GEtting everything in writing? Yes - I agree with Lux's advice.

[Hot dog]

I would just keep that part of the friendship strictly business. Why not let her rent the place and put all the rent toward the fence and the basement. It will take a bit longer for you to do what you want but I hate taking money from people so I would just wait and let her pay you monthly rent. No sense ruining a good friendship just cause you want something now.

[wincrasher]

I think that putting it in writing is a big "I don't trust you" and could put a big ding in your friendship.

If she is your "best" friend, you shouldn't have any concerns about it.

If you insist on an agreement at all, I'd just to a simple lease. By having a lease, she is on the hook for the whole term, if she pays up front or not. You could tell her it is for her protection.

[cptacek]

Look online for a lease agreement. I had a friend rent a room from me, and I made sure that everything was in writing. But, I had a cousin rent a room, and we didn't put it in writing. Nothing bad happened in that case, but I would have hated to have some dumb conflict hurt our friendship.

[myrdale]

If you go by Staples or Office Depot, they usually have a section of self legal documents including renters agreements.

I'd make sure I put everything in writing. Clear, and straight forward.

While the $6000 might seem like alot, you would be surprized how quickly the time will pass. At $600 per month rent you'd only have 10 months. At $300 a month your looking at a year and a half.

Lastly I do question the wisdom of her actions. To inherit that much money, then sell your house instead of paying it off and opting to rent a bed room from a friend instead, just does not make sense to me. Just off of that alone, I am curious about how well she will manage her inheritance.

LuxLiving's suggestion about the notary public is an excellent one. You may want to keep your original signed copy in a safety deposit box or at your parents house (aka somewhere else) aswell.