Can I buy a house to rent to my lil sis on housing benefit?

scarletjim

Kimberley wrote: »

Hold on a minute. They are claiming housing benefit yet want another kid? Why? This is why after the first child born into benefits then any more born after you shouldn't get any benefits for them.

Understand your point, probably agree, but irrelevant to the purpose of the thread.

Loopy_Girl

scarletjim wrote: »

READ THE THREAD!

What benefit will I get compared to a normal BTL? Save agency fees, accept a bit less rent, it works out about the same, it won't make much difference to me. Can't believe so many people on a website like this can completely miss the point of a thread by so far... They will live how they live irrespective of what I do, and irrespective of whether or not I agree with it.

I have read it and there's no need to shout. You will benefit as it increases in value. She is going to keep on having kids and stay on benefits (your words, not mine) so your mortgage gets paid via the LHA and you have a little nest egg for the future with no crippling mortgage payments every month. THAT'S the benefit but as you say, this isn't the thread to discuss it.

hippy-chicy

Serious post now though. When i look at the commerciality of the tenancy these are some of the things i look at.

1. Was the property purchased to let to the tenant
2. Is there a formal agreement in place?
3. Were they renting the property prior to coming onto benefits - has there been any rent increases/ decreases.
4. Was the property let previously?
5. Has it been advertised to let to other possible tenants.
6. What action would to taken if rent arrears accumulated.
7. Would the landlord take eviction proceedings through the court.
8.What would happen if HB was NOT paid.
9. Had the tenant looked for other accommodation

These are just some of the things i would look at and take into account when making my decision.

1sue23

scarletjim wrote: »

Understand your point, probably agree, but irrelevant to the purpose of the thread.

Have you thought that by helping them to much they will not want to help themselves .

welshmoneylover

scarletjim wrote: »

READ THE THREAD!

What benefit will I get compared to a normal BTL? Save agency fees, accept a bit less rent, it works out about the same, it won't make much difference to me. Can't believe so many people on a website like this can completely miss the point of a thread by so far... They will live how they live irrespective of what I do, and irrespective of whether or not I agree with it.

But you will gain financially from it via the tax payer who is paying for your bone idle sister and her poncing family?

chesky369

Can't your brother in law look after his children whilst your sister goes to work?

scarletjim

Oldernotwiser wrote: »

And you believe that you and the taxpayer should help them to do this?

At no point have I said that I think the taxpayer should help them to do this - irrelevant to the thread but I happen to think its completely wrong that I as a taxpayer should fund this - so for you to say that I believe the taxpayer should help them is baffling for me - read the thread properly!

As for me helping them, well she's my sister, she's gonna do this one way or another anyway, so it may as well be me being her landlord as anyone else. Why are people here talking like if I didn't buy and rent to her then no one else would?

scarletjim

Loopy_Girl wrote: »

I have read it and there's no need to shout. You will benefit as it increases in value. She is going to keep on having kids and stay on benefits (your words, not mine) so your mortgage gets paid via the LHA and you have a little nest egg for the future with no crippling mortgage payments every month. THAT'S the benefit but as you say, this isn't the thread to discuss it.

But how is that any different to me buying the same property and renting it to someone else? A bit more rent, some agency fees, a long term arragement, but less likely to increase the rent so regularly if it's my sis, it all evens out.

cunningfox_2

scarletjim wrote: »

As for me helping them, well she's my sister, she's gonna do this one way or another anyway, so it may as well be me being her landlord as anyone else. Why are people here talking like if I didn't buy and rent to her then no one else would?

Ok with this comment the answer would be no. You are clearly not going to treat her as you would treat me - therefore the tenancy would not be commercial.

This is only my opinion though - try the LA....

scarletjim

1sue23 wrote: »

Have you thought that by helping them to much they will not want to help themselves .

Again, irrelevant to the purpose of the thread.