Just don’t do it.
It may sound like a good idea, but it will change your relationship for the worst.
There are rare instances where it *could* work, but most of the time, it won’t play out well. If anything goes wrong (and it will), you’ll be lucky if you can even stay friends after the dust settles.
Often times, friends will subconsciously expect leniencies because of their close relationship with you. To be your friend’s landlord creates a conflict of interest. You have to be professional – and typically, friendships by nature are anything but. Not to mention your financial portfolio is at stake!
If you value your friendship, you should either let him/her stay in your property for free (if you have the financial means to), or simply deny their tenancy.
Hey friend’s name , I would love to help you out, but I have a policy that I don’t rent to friends or family. If you’d like, I can help you look for another place.