I’m retiring next year and my son is asking to live in my investment property for less than market. Is this a bad idea?

Core Insights - The rising cost of living, inflation, and high interest rates are leading to increased financial support from parents to young adults, with 44% of individuals aged 18 to 34 receiving such assistance as of 2024 [1] Group 1: Financial Situation of Parents - Many parents nearing retirement are concerned about their financial stability while wanting to assist their children [1] - Gordon, a 64-year-old planning to retire, has $400,000 in retirement savings and a home valued at $1.1 million, with a remaining mortgage of $200,000 [2] - Gordon's rental property in a lower-cost city generates just enough income to cover expenses and mortgage payments [3][4] Group 2: Challenges of Renting to Family - Gordon's son wishes to move into the rental property but wants to pay below market rate, which would not cover the mortgage [5] - Renting to family members below market value results in the inability to deduct rental expenses due to IRS regulations [6] - Potential conflicts may arise from the landlord-tenant relationship, complicating issues like late payments and maintenance [7]