[quote=UCGal]We’ve talked to her and gave her two options –
– Higher rent if he stays.
– Have him stay less.
She’s interested in the second option. I’m trying to figure out reasonable guidelines for the “staying less” part.[/quote]
I am not a real estate attorney, and you might want to talk to one, but I would think about two things: (1) Can he prove he has another place where he can legally reside? (Is he hanging out because they’re in love or because it’s convenient.) Harder to argue he’s your tenant if he has a lease somewhere else. (2) Have him sign a document saying that he is not now, and will never claim to be your tenant until/unless he signs a lease with you.
Again, I would talk to a lawyer to see if such an agreement is legal/would hold up, and what the ramifications would be. But you have some leverage now to say that you’ll be more generous if he’s willing to sign.