Renting your Mount Isa property to family or friends

Finding good tenants can be tough, so it can be tempting to rent out your Mt Isa property to family or friends instead of strangers. But there are both pros and cons of doing that. Read on to find out everything you need to know, including tips to avoid any potential hassles.


The potential advantages of renting your property to family or friends include:

  • You will know more about their character than you can glean from a credit or rental history check on a stranger.
  • Saving money on advertising for tenants.
  • They may feel more of an obligation to look after your property and pay their rent on time (but not necessarily).
  • Direct tenant communication may be easier (though not necessarily, especially if there is an issue that needs resolving).


On the flip side, the potential disadvantages of renting your property to family or friends include:

  • Not knowing much (or anything) about their credit or rental history unless you do a formal check.
  • There can be more emotion involved if there are property or rental payment issues than if you were dealing with a stranger. You may damage your relationship if there is a dispute.
  • Your family member or friend may not be as motivated to regularly pay their rent on time, expecting you to cut them some slack due to your close relationship. And you may be relying on that income to be paid on time, every time to help you with your loan repayments or other living expenses.
  • A friend or family member may take more liberties with your property than a stranger. For example, making unapproved alterations.
  • If you primarily view your rental property as an investment where you want to maximise your return, then mixing your personal and business relationships is rarely a good idea.
  • You may be less inclined to have a formal lease arrangement in place. If you don’t, this increases your risk if something goes wrong.
  • You may be less inclined to use the services of a property manager. Once again, if you don’t, this increases your risk if something goes wrong.

Tips for avoiding rental property issues with family and friends

  • Have a formal rental agreement in place

Even though you may be dealing with family or friends, having a formal lease agreement in place for your Mt Isa rental property helps to set clear expectations and it minimises the potential for disputes. That’s because the rights and obligations of both parties are expressed in writing.

Formal rental agreements are also a legal requirement in Queensland for leased properties. Standard Queensland rental agreements are available for free via the Rental Tenancies Authority.

  • Use the services of an experienced local property manager

Hiring an experienced local property manager will help you to keep your personal and business relationships separate. Your property manager will handle anything to do with your Mount Isa rental property, so you can be free to continue your normal relationship with your friend or family member without any awkwardness. The services they will provide include doing a rental history check on your tenant, lease preparation, rent collection and organising any necessary property maintenance with your approval.

About us

Jays Real Estate has been Mount Isa’s premier residential and commercial real estate agency since 1981.

If you’re thinking about buying, selling, renting or leasing any Mt Isa property, or you need your property professionally managed, then contact our team today for an obligation-free chat!

We’d be happy to provide you with advice and to answer any property questions you have.