How to Rent a Property to Adult Children

From a business standpoint, renting property to your adult children should be no different than if you were renting it to strangers. Typically, people own additional property as an investment, and if you are not making at least enough money on it to cover your expenses, you are operating at a loss. If you provide rental space to your children, it is up to you to set the rent amount and the terms of the agreement. Sit down with your children and discuss their needs -- and your own -- before you write the lease agreement.

Select the type of rental agreement to use. There are two typical rental agreements, leases and month-to-month. A lease normally lasts for one year and you cannot change your terms within that year. In a month-to-month, you can change the terms each month providing that you give your child 30 days' notice.

Set the rental amount. If your child is going through a hard time financially, a month-to-month lease allows you to keep the rent low and increase the amount when he gets back on steady financial ground.

Write the lease in accordance with the laws in your state. Even though you are renting to your adult child, you cannot violate the tenant/landlord laws. While a month-to-month agreement typically does not have to be written, writing down the term of the rental can prevent problems in the future.

Ask your child to read and sign the lease showing her acceptance of the rental terms. Collect any advance rent or security deposit -- if applicable -- before she takes possession of the property.


  • While you do not have to charge your adult children rent, according to CNN Money, asking them to help cover the property expenses is an acceptable means of helping your children and, at the same time, not taking a loss on your property.

    If you are renting business property to an adult child, a percentage of the business in lieu of rent can be an effective way of helping your child and looking out for your own interests at the same time.


  • Even though you are renting to your child, the property must be livable if it is a residence. States such as California require that the building have secure windows and doors, working plumbing and be free of rodents and insects.