Renting my property to my brother

Alter_3

Hi, sure this topic has been covered but I cant seem to make full sense and apply it to my situation. As follows. I'e had my property for 10 yearsand for the last few I have been staying with my partner more and more and finally decided that I should rent my place out and officially move in with my partner. My flat is empty and in the progress or preparing it for renting. Energy performance and safety checks and a few maintenance things and it could be on the renal market in a month.

My brother has an issue where is is going be homeless for a month, two tops and suggested getting his housing benefit paid to me and he can live in my property before I rent it out.

Is this possible and what do I new to do to sort this out. I'm going to be moving my council tax and everything to my partners house. So I won't actually be registered as livig there anymore which I need to do anyway to rent the property. But is there any forms that I an use so that the housing benefit can be paid to me. Does the property have to be advertised on the open Market first? I understand that everything is made to stop fraud and people cheating the system but it's also seems very complicated.

Any help greatly appreciated.'

PasturesNew

The problem will come if they decide it's a "contrived tenancy", so you weren't ever renting it as a business, but instead rented it just to your brother, to pocket the LHA amount. So you'd have to prove that it was a flat for rent on the open market.

Or, as you've been having it hanging about, doing nothing, you could just let him stay there for free - like you'd do if he couldn't put a claim in.

Jowo_2

Have you got permission from your lender to let out the property? Also, you need to ensure you have landlord's insurance.

LHA is paid directly to the tenant unless the council deem them to be vulnerable in some way that means they will have trouble handling their financies - the council website will provide more info on this.

Also, you have to consider the family relationship problems that happen when minor landlord/tenant issues escalate and think long and hard about entering into a business relationship that can affect it. Would you be happy evicting your brother?

Why does he only need accommodation for a month or two? I'm not familiar with short-term rentals and their tenancy agreements so perhaps other posters can comment on this. However, the reason why most landlords issue a 6 month contract is that it's not possible to take court action against the tenant earlier than this (unless they are in arrears for a couple of months rent) so it's a waste of paper having a shorter contract than that.

A contrived tenancy is one set up to exploit the HB system so the local council will look to see that it is a proper commercially run tenancy with an agreement. Speak to the local council about their requirements.

boxer691

My advice would be to let your brother become homeless for a while and the Social Security would be obliged to sort him out with some accommodation. This can be costly and so it may be in your intrest to go along to housing with him and explain that you cannot simply afford to leave the house empty because its costing you to do so. Explain that you would be willing to allow him to live there for whatever the minimum allowance. This may be less than the rentable value but its a win win situation for bothe you, your brother and social security. Get an estate agent to value the potential rent. You would also need a shorthold tenency agreement drawn up and inform the mortgage company that you are letting it.

Alter_3

Firstly, thanks for all the replys, i know this post is probably covered and very simple but its really confusing for me to apply what i've read to my situation, so your a great help.

I see your point on just letting my Brother stay there and that was my original thought, but he suggested getting his housing benefit paid to me and i have never claimed it so have no experience of how the system works so just didn't know what and how it was done and any limitations.

Also how do i prove that the property is a rental properly, obviously its not at the moment but my aim was that it would be in the next month, or at least on the market, alternatively is it possible for the Housing benefit to prove that its not, and how would they do this ?

I have already had estate agents round to assess the property and have chosen one that i am going to use, i just need to give them the correct paper work, Electrical safety check and Energy performance certificate and the property is ready for the market. Which is stuff i'll guess i'll need for the Housing benefit?

I am also considering talking to the housing association and see what they suggest.

Landlords insurance is another plan for this month, i have contacted a few brokers and have some quotes and this will be changed.

I have spoked to my mortgage lender and there ok with the flat being letted, and also the management company for my flat. so thats all covered i think?

Ok so the reason for the short term, long story so try to make it short. he was having problems, alcohol, started in sheltered accommodation (sorted by social security i think) and when he was clean was helped into a property, this was short term and he will be evicted start of august, but the review for finding another property isn't till start of september, hence the short term need for a roof over his head. And i just dont get how the timelines are a month out but thats how they are.

As for evicting him, if i needed to i wouldn't hesitate, this i think is probably the only benefit i have being family, i will just change the locks or go in and boot him out my self. I have told him that is for a short term and he's agreed, and out of all the family we get on the best so i think its cool.

Paperwork.
is the paper work thats mentioned simple forms, is it the sort of thing that i can get pre done from WHS, thats what my partner has from her tenant and it works, just fill in the details and its done??

Thanks again all, great informed reply, just what i need, and apologies for the more questions and if i'm not very clear, this all confuses me a bit too much. Give me a mac computer and i'm sorted, housing benefit???? dont get it.

have a great day.

boxer691

Just go to the social security local housing office with your brother and explain the situation. If as it sounds, you have done every thing in accordance with the housing Act then its in the intrest of the council to allow your brother to live in the falt where you can keep an eye on him. Its not unreasonable that a family member would want to help out a relative and quite frankly you are doing them a favour. They will help you fill in the forms, take all documentation with you. Lastly and if you do rent it to him, you wouldnt be able to just go along and boot him out and change the locks.

RAS

Alter wrote: »

As for evicting him, if i needed to i wouldn't hesitate, this i think is probably the only benefit i have being family, i will just change the locks or go in and boot him out my self. I have told him that is for a short term and he's agreed, and out of all the family we get on the best so i think its cool.

ERR No.

The minute that you accept a penny in rent from him, your relationship is covered by the relevent laws. That means that you would have to give him the relevant notice (two months) served properly (S21 or S8 depending whether he was in arrears). If he refused to move out, you have to go to court to get possession. if he still refuses to move out, you have to get in the bailiffs.

All of which begs the question why your brother does not just sit tight in his current accomodation. By the time the landlord is granted possession, he will have his review and have moved on anyway.

Just to add the penalty for illegal eviction (which is what you think you would do) is high.

Jowo_2

As per RAS, you can't simply change the locks - the legal process to evict a tenant can be long, complex and expensive, particularly for novices.

Since your brother will be technically homeless soon, I suggest you and he read the section on homelessness in the Shelter website to understand his options, including the obligation of the local council to help homeless applicants.

What 'review' is this that you speak of that takes place after his current accommodation ends? Who is taking it and why? Why can't your brother find his own accommodation in the next month?

My experience of the alcoholics in my wider family are such that I would never, ever, ever want to be their landlord - their addiction makes them terrible at family relations, prone to criminality, unable to hold down a steady job and a very poor tenant. Perhaps that's just my own experience but there's no way I'd ever contemplate handing over a key and those that offered hospitality often rued it because of the trail of debt collectors, police, violent drinking buddies, rent arrears and subletting that it generally involved.

BTW, I do admire what you are doing, just that it highlighted the cold fact that I have absolutely no appetite for this type of intervention so I'm either mean or sensible....

Alter_3

AH! ok, this does make things trickier, now that i have questioned it in my head i'm unsure weather i could trust him, but am sure i could and before i've questioned it in my head following this post i was certain.

So if i understand this right, if i accept money from the housing agency for rent i cant change the locks or evict him myself, but if i just let him stay there unpaid i can?

Thats a good point about my bro staying put till his review, thats a great idea.

Am also going to get my stuff sorted and get paperwork and see about getting to the housing benifit people with him or at least talk over the phone with them.

get every base covered and least have a bit of an idea of what i'm talking about...

Cheers.

Yorkie1

As i understand it, if you accept money as rent then it becomes a tenancy with all associated legislation and tenant protection. Illegal eviction counts as harassment, which is a criminal offence and you really don't want to go down that route. Simply changing the locks would consitute illegal harassment. You would have to go down the court route.

I'll let others comment for sure on the situation if haven't accepted any money from him / local authority (source of money doesn't matter for these purposes, I believe).

Another thing which occurs to me - and which may or may not have any relevance at all but might be worth checking out - is whether the local authority would still regard him as homeless and thus requiring their assistance if he is renting from you? Really don't know whether this would be the case or not, though.