If squatters suddenly appeared in my rental house and I couldn't get rid of them, how does that affect the "fair rental price" and the days rented? My house was occupied for more than half the year by people who paid me nothing and with whom I had no contractual relationship, and which the police and courts took forever to get out of there. I couldn't rent it to anyone else.
And what about a tenant who had a lease for a fair rental price but stopped paying? Do I count the days rented as through when the tenant last paid, or when they actually moved out?
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No, the fact that your renters didn't pay the rent they agreed to pay doesn't affect your answer about whether the property was rented at a fair rental price.
The purpose of this question is to identify people who rent to friends or relatives at below market rents so that they can get a tax loss. If your intention is to get a fair market rent, you can answer that question Yes.
As far as rental days, you should count all of the days your renters stayed in your property, but not the days that squatters were there.
Thank you.
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