Who can i rent to

pink2009

My husband is just in the process of purchasing a house which we plan to rent out. My sisters daughter has asked if see can rent it from us when the sale goes through. She is in reciept of housing benefit in another area and wants to move nearer to her mum.

Will housing benefit pay rent in this situation?

Jowo_2

Search this forum or Google for the phrase 'contrived tenancy' as this is regularly asked and there's loads of existing information.

Essentially LHA is payable to a landlord who is related to the recipient if the tenant has exclusive possession of it (i.e. doesn't live in the same property as the landlord) but it has to be a proper tenancy undertaken on a commercial basis, not contrived to take advantage of the HB system.

For example, it would be considered contrived if it was an informal arrangement and where the landlord would only charge rent when the tenant is on benefits but wouldn't ask for rent when they are in employment.

pink2009

Thanks thats helpful , she'd be living there with her son and we would draw up an agreement as we would with anybody else but wanted to check first.

clutton_2

pink2009 = i can think of nothing worse than someone who knows nothing about the landlording business renting to a member of their family with no agent to help them.

Pleeease use an agent - at least for the first 6 months while you learn the business.... LLs have a lot of responsibilities and over 50 acts of parliament to comply with ........

read https://www.landlordzone.co.uk to see of all the pitfalls of benefit tenants - since this is a close family relation - i would most Definitely use an agent - they will be able to guide her if things go wrong.... you may have to evict her if she cannot pay the rent or adopts anti social behaviour - its much easier for an independent third party to do these things

tek-monkey

I suspect it will be looked on more favourably by the HB people too if its all through an agent, may be wrong though.