Rent to Family Member

selbailey

Hi,

Just a quick question.. If you change your house to a concent to let.. can you rent to a family member.. they wont be claiming housing benefit etc.. they work.. just wondering if this is possible or not?

Thanks

selbailey

Can anyone help? x

theartfullodger

Couple of points.,...

a) Only ever rent to anyone (family, the Archbishop of canterbury, that man from the chip shop) if you are prepared to evict them if it all goes wrong.. Otherwise you are giving them a big blank cheque,,.....
b) Depends on the mortgage - some may say no rent to family members..
c) You'll need special Landlord Insurance (no, you will, otherwise if place burns down & relo. 'orrible burned they ain't covered by insurance & nor is the house rebuild..). Some insurances say no renting to family..
d) You'll need to comply with all the landlord stuff - Gas safety certificate etc etc...
e) And declare income to tax man (before someone else tells him & he gets suspicious..)
f) How do you know they won't be claiming HB/LHA?? Might lose their job, get a new girlfriend/boyfriend whoever who wants to claim.., gets long-term sick, whatever
http://england.shelter.org.uk/get_advice/paying_for_a_home/housing_benefit_and_local_housing_allowance/housing_benefit_if_renting_from_a_family_member

g) Use proper paperwork - join NLA or RLA they have that stuff & TRAINING!!!!