Q: Can you rent a home and charge NO rent in lieu of repairs?
I have a second home that a person wants to rent. It is not up to code and would not pass the laws under the Virginia Residential Landlord and Tenant Act. The person wanting to rent is a contractor and wants to make the repairs himself in lieu of rent. We would not charge any rent for an agreed upon amount of time and the home is brought up to code. Is this legal? And what would be the correct type of agreement to use?
A: It can be done under the limited facts you provided. BUT IT IS DANGEROUS to both you and the tenant. There is no 'form' agreement and you'll need a customized contract regarding the quality of repairs ('to code' is a MINIMUM standard; 'workmanlike manner' is better) the scope of repairs, how they will be inspected, who is responsible for building permits (yes, they'll be needed) and a whole lot of other issues. Failure to anticipate and agree on issues in advance is a recipe for disaster and the only ones making money will be the lawyers trying to clean up the mess.
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