Owning a property and renting it out to a relative may seem like a convenient and comfortable arrangement. However, there are several compelling reasons why selling your property to an investor can be a beneficial move. While the decision to sell can be challenging, it’s essential to consider the financial, emotional, and long-term aspects that come into play. In this blog post, we will explore the advantages of selling your property to an investor rather than renting it to a relative.

  1. Impartiality and Professionalism:

One of the primary advantages of selling your property to an investor is the introduction of impartiality and professionalism into the landlord-tenant relationship. By renting to a relative, you may find it challenging to enforce rules, maintain boundaries, or deal with financial matters objectively. This can lead to strained relationships and potential conflicts, which can be avoided by selling to an investor who is solely focused on the property as a business venture.

  1. Financial Considerations:

When renting a property to a relative, it’s common for landlords to provide lower rental rates or even forgo charging rent altogether. While this may be done out of goodwill, it can lead to missed opportunities for generating rental income. Selling the property to an investor allows you to maximize your returns by receiving the full market value of the property, which can be used for other investments or financial goals.

  1. Minimizing Emotional Ties:

Renting to a relative often involves emotional ties that can complicate the landlord-tenant dynamic. Issues such as late payments, property damage, or disagreements over maintenance can strain family relationships. Selling the property to an investor can help separate personal and financial matters, allowing you to maintain a healthier relationship with your relative, free from the stresses associated with being a landlord.

  1. Mitigating Legal and Tax Complexities:

Renting a property to a relative may have legal and tax implications that are not present when dealing with an investor. Depending on local laws and regulations, you may need to comply with specific landlord-tenant laws, rental agreements, and tax requirements. By selling to an investor, you can eliminate the complexities and potential legal entanglements associated with renting to a relative, ensuring a smoother transition.

  1. Diversification and Investment Opportunities:

Selling your property to an investor gives you the opportunity to diversify your investment portfolio. Instead of tying up your capital in a single property, you can explore other investment avenues that may offer better returns or align more closely with your long-term financial goals. This flexibility can lead to a more robust and balanced investment strategy.


While renting a property to a relative may initially seem like an appealing choice, there are numerous reasons why selling to an investor can be a more beneficial option. By selling, you introduce professionalism, impartiality, and minimize emotional ties. You also have the opportunity to maximize your financial returns, mitigate legal complexities, and explore alternative investment opportunities. Ultimately, the decision to sell your property to an investor should be carefully considered, weighing the financial, emotional, and long-term implications for both parties involved.

If you have a property you are considering renting to family or you are currently renting to family and would like to discuss your options, give us a call or fill out a quick form!