Renting out our house to friends - what do we need to do to?

pretzelnut

We have decided to rent our house out.

We had to move about 30 miles away 4 weeks ago, due to my mum being ill so that we can support er better on a daily basis.

We dont want to sell our house and in the present climate its not worth it. Even after us spending the last year working on the house to give it a complete renovation.

We have decided to rent it out and have had a lot of interest from friends and work collegues. The mortgage company have allowed us to do thisd for 1 year due to our circumstances, before they would ask us to change it to a buy to let mortgage.

We dont want to use a letting agency as we may have already found tenants.

I would just like to know what we need to do with regards to a tenancy agreement and bond.

I know you have to put the bond into some sort of protected scheme but we have no idea where.

As landlords is there anything else legally that we are required to do.

Were not looking at renting it out till the end of january.

Would we be better of using a letting agency, or can we do it ourselves?

slummymummyof3

I would seriously reconsider renting out to friends or family. Having done this ourseleves a number of years ago, we learnt the hard way. They think that as they know you, its ok if the rent isn't forthcoming etc. If there is any damage to the property then this also causes a strain on your friendship/relationship with those renting from you. You can still use a management company even if you have found your own tennant.

I would seriously reconsider your thoughts though on renting your property to someone you know. You will be the one taken advantage of.

GDB2222

Better starts looking for new friends. :-)

speedtwin

If renting to friends it can cause problems sometimes cos they try to get away with late payments etc. If you do decide to go with them do it thro a agent for the first 6 months to see how it pans out. Let the agent deal with collections but dont pay the full management rate as you have found the tenants and make it clear to the agent it may only be for 6 months.

pretzelnut

Thanks for your advice.

Our next door neighbour who we have lived next door to for 3 years has told her sister that our place is up for rent, we dont actually know this person but our next door neighbour is fab. Thats what i meant by friend, bad choice of words on my behalf.

I fully understand youre point on the losing feinds etc due to non payment. I would rather not use this option but my DF is worried that someone on benefits and on drugs will move in and completely trash the house.

I have told him that not everyone on benefits fits into this stereotype. Which is why he would prefer someone to move in that he sort of knows rather than a complete stranger. But i have said that just cos our next door neighbour however heavenly she is has reccomended these people it doesnt mean that they will be the perfect hassle free tenants.

I just have to convince him that going with a etting agent will be better for us in the loing run, were busy people as it is without having to run around and chase up rent payments etc etc.

Thanks for the words of advice but my original questions still need answering though.

cheepskate_2

princesswoo wrote: »

Thanks for your advice.

Our next door neighbour who we have lived next door to for 3 years has told her sister that our place is up for rent, we dont actually know this person but our next door neighbour is fab. Thats what i meant by friend, bad choice of words on my behalf.

.

Hi

I am a little lurker on this board but had to say.

Doing it this way you not only fall out with your tenants but also your next door neighbour if there are any problems, one thing you dont want to do is fall out with your neighbour if you can help it. Does she also know it is only for rent for 1 year.

Dont have any info like the others that are on here about renting in general, hope it all goes well for you

PasturesNew

It might be that your neighbour doesn't even like these people... ever done that? Mentioned something in passing and before you know it the person you hate is wanting you to pursue something for them?

Imagine the worst person in the world who insists on being your friend, who then finds out next door is for rent and forces you to find out more.

You need to get this neighbour to one side alone and just double check with them that they DO actually want to live this close to the person they've asked for ... or if they were really feeling backed into a corner and hoping you'd say it was taken.

The_Banker_5

As other posters have said think very carefully before renting, especially to friends. Just because they are your friends is no guarantee they will look after your house the same way as you. One of them will say 'Awww look we chipped some paint off' and the partner will probably say 'So what it aint our house.

Washing machine broke........you fix it.

Window cracked.......you mend it.

Carpets filthy............not their problem, not their house.

Central heating on the blink.......you fix it.


Also you want to think about the buildings insurance because if you are away from your house it could invalidate this if anything happens.

robin_banks

contract as you would with anyone else.

beverleyhills

However small it is, you are starting a business. Be businesslike. If you don't know what to do, employ someone who does.

You probably don't need any more hassle in your life, than you have already.

jcorbygas

You need to get a Landlords Gas Safety Certificate for all gas appliances in the house (if you have any).