Landlord Question and Answer Forum

My accountant told me that I rent a house to my son that I own but I couldn't rent to him for just any amount!! I was told there was a an amount he would have to pay based on the property value of the house. Is this true? Where are the PA laws regarding this issue and are their any new laws added as of 2013? Is there a limit of minimum or maximum amount of rent a landlord can charge and are there rent control/rent stabilization policies or laws in Pennsylvania? “

I would contact your local housing authority to verify. I have never heard of a specific amount that a landlord "must" charge, regardless of who they are renting too.

Posted by karen s, WI on Thursday, January 17, 2013

Yep, the accountant is right. IRS says that you must ask for fair market rent. However, there are workarounds. Do a long term lease (several years), have him responsible for all minor repairs (excluding capital expenses). Depending on the rent in the area, you may be able to decrease it by $100 or $200.... If you’re just trying to help him and not worried about the amount of rent you have to claim on taxes, another option is gift the son some $$$$ annually. The down side to this is that you still have to claim the fair market rent. Check with your tax advisor. -----Disclaimer: Since I’ve been answering a lot of questions, I thought I would make the following statement. I’m not affiliated with EZlandlord Forms. I’m just here (not sure how long) to help those that have questions. Having 40+ yrs with Rental Property and done well, it’s my way of “Pay it Forward (check out the movie).” However, it is up to you to become familiar with Fed/State/Local laws. I always like to know if the suggestions I offer are helpful. Feel free to comment anytime. Thanks in Advance. BTW...check out the Rental Property Organizer at Simp-List.com. Free Trial Download with data.

Posted by Bob R, CA on Thursday, January 17, 2013