<prompt> Human: I have a few extra rooms in a house that I just bought. I know a few trustworthy people that still live at home with the parents and want to move out. Whats the harm of having 1 or some of them stay with me, which I charge them low rent? Staying away from all the legal stuff would be nice.Edit: Thanks REDDIT for your perspective. I will reconsider my position.  <response>: Just because youre good friends doesnt mean youd be good roommates.Legal contracts are important. But theyre not important because as legal documents because the court does uphold verbal contracts, and would look into the history of your rental agreement, etc but because it sets boundaries. When you live with someone, you can have very different expectations about chores, quiet hours, overnight guests, sharing food in the fridge, playing music out loud, who gets to watch TV in the evenings, when is rent paid, what happens when they break the stove who pays for replacement, etc. You spell it out in the legal contracts.Theres no harm of one of them staying with you. If you dont report it to the IRS, its unlikely theyll chase after you. They would if you werent living in it, but theyre usually pretty lax about owner-occupied situations, but Im not a lawyer, so dont quote me on this.And as ucosmicosmo4 mentioned, if you evict them, you lose a friend. If you dont, youre letting someone freeload off of you. 