When is a house considered a rental property? 2 Answers as of August 28, 2013My brother lives in a house that I own (but do not live in) and pays the mortgage directly from his bank account. Does the house need to be formally changed to a "rental property" with the mortgage and insurance company even though I'm not making any money on it nor am I even using a lease?
Dessy & Dessy, a Professional Corporation | Ronald D. Dessy
If you obtained the loan on this house receiving special loan rates as an owner occupied property, it may not be smart to contact lender. You should review your loan documents to determine whether that is an issue. As to your insurance, I suggest contacting your insurance broker,rather than your insurance company, to ask the broker whether converting an owner occupied home to a rental home will affect the premiums payable, or the insurance coverage.
Answer Applies to: California
Stuart P Gelberg | Stuart P Gelberg
Not really a landlord tenant Q. Ask your insurance agent. I think it depends on whether a family member is in reality a tenant or a family member residing there. Do you list rental income on your tax return? Who is taking the mtge interest deduction?
Answer Applies to: New York