Rental in exchange for repairs

[fgs]

What is the name of your state (only U.S. law)? AL
I am not sure of the correct forum for this, but it is a potential landlord-tenant situation that I would appreciate some input on.

I inherited a house from my father a year or so ago. I do not live in the house. It has been vandalized and I now need to make repairs that I can't afford and have someone there so that it won't be empty. My goal is to eventually get rental income from it, probably Sec 8.

As I stated before, it needs repairs due to the vandalism and I can't afford them. My preference is not to sell it. I've been trying to think of a way that I can get the repairs done more reasonably and possibly at the same time allow someone free rent -- basically no rent or reduced rent in exchange for repairs.

A friend of my father's is interested in this proposal. I would have to draw up a lease that states this, but am not sure of all that I would be getting myself into. Also wouldn't I need something like $1 million umbrella insurance policy to help in case anyone making repairs gets hurt? What kinds of things should I make sure are covered in the lease? If so, if I took out this policy on my residence would the other house be covered under that? Any suggestions or other alternatives? Thanks in advance.

 

[FarmerJ]

If you absolutely must go this route then you might want to do it with a lease that spells out how much per hour or job the person will get in credit toward rent payments and completion time tables and written agreement as to what will be done. If it was mostly just things like drywall , broken windows and kicked thru doors it might not be so bad BUT if any electrical or plumbing work needs to be done you might be making a mistake if this person took any kind of shortcuts that building inspections would force a gutting to inspect or correct. Personally I think the whole thing could bite you badly. BUT perhaps you should discuss the matter with a atty who can help you by writting up a workable agreement. Try the links above to consult with a Atty.

 

[fgs]

FarmerJ
Thanks very much for your response.

I too think that it is possible that this is a horrible idea. Mostly I think that when the "free" period ends, they won't pay and I'll be forced to evict. Evictees sometimes like to tear things up, so I could wind up worse off than now.

I can't think of any alternatives. Do you know of any other way I could get these fixes done and make the house available for use??

Thanks

 

[FarmerJ]

I still think your best shot is to consult with a real estate atty, the other thing that you might want to think about is with a written contract becoming partner with someone who has the resources to repair the house, then the 2 of you rent it out and have in the contract a repayment schedule. Other wise maybe your best option is to just sell it as is. LAST thing , food for thought , call habitat for humanity if your going to sell, if they are interested in the home It can have a new life that way.

 

[fgs]

Thanks so much. I appreciate your input.