LLC renting apt to related party

[KJ Judd]

LLC owns residential rental property. Members are father, 2 brothers & a friend. They are considering purchasing a new property and having one of the brothers live in one of the units and have asked my advice.

Any related party rules or personal use of rental property issues here? The personal use of rental property allocating of expenses (TTB p. 7-7) doesn't seem to fit since the LLC owns.

If the brother pays fair market rent, I see no issues. If they let him live there rent free (maybe in exchange for maintenance, etc.), then what?
Maybe consider the fair market rent as a guaranteed payment to him?

[Burke]

Renting Apt to Related Party

Suggest he pay FMV rent to LLC, and they pay him for maintenance, etc with proper records. Keep it clean.

[JAinNC]

Have a detailed rental agreement

And make certain renter is not treated with special provisions. Must be business-like.
I would actually have the rental agreement signed prior to renting and have it notorized.
Do not trade off any rent for "renter fix the leak himself"? Deposit and document rent received.

[KJ Judd]

Good advice. This group wants to keep every thing clean & straightforward.