Renting a property for less than six months

Dodgysailor

Hi,

I will rent my house next September to a friend of mine for only three months. Even though we know each other I want him to pay a month deposit plus a month in advance and we would like to sign a contract.
Do I need to put the deposit in a scheme for such a short tennancy period?

Werdnal

Renting to friends is fraught with problems and how a lot of friendships end.

I agree that you would be very unwise not to give your friend a fully binding tenancy agreement (you can make this 3 months, but beware, you cannot evict your friend until 6 months passes regardless of what the TA says!), make a full and thorough inventory of the property and get the deposit protected. Its very easy to set up - 5 minutes on the DPS website, pay online and all done. I assume you have already told your mortgage provider you are letting? If not, do so and get their consent otherwise you are in danger of reposession. Also, house insurance is void if you are not living there. Declaring income for tax - are you aware of this too?

Just out of interest, are you travelling abroad whilst you friend rents your property? If so, you will need to arrange for them to pay your HMRC whilst you are away. What if they have any problems, damage etc whilst you are abroad - who will they contact to arrange repairs etc.

Get it all done formally, don't take a chance with the most valuable asset you are ever likely to own!

thegirlintheattic

Also if the property is gas do you have a gas safety certificate?

Will you be willing to drop everything to come fix things for your friend?

You will need to get landlord's insurance as well.

may_fair

Dodgysailor wrote: »

Hi,

I will rent my house next September to a friend of mine for only three months. Even though we know each other I want him to pay a month deposit plus a month in advance and we would like to sign a contract.
Do I need to put the deposit in a scheme for such a short tennancy period?

If the property is in England/Wales, the tenancy is likely to be an assured shorthold tenancy. As such, yes, you are required to protect the deposit.

Note that there is no minimum term for an AST, but you cannot obtain a possession order under s.21 to take effect earlier than six months after the start of the original tenancy.

Also note that there is a vast range of other legal obligations which apply when you grant a tenancy, and deposit protection is just the tip of the iceberg.

G_M

Dodgysailor wrote: »

Hi,

I will rent my house next September to a friend of mine for only three months. Even though we know each other I want him to pay a month deposit plus a month in advance and we would like to sign a contract.
Do I need to put the deposit in a scheme for such a short tennancy period?

Yes.

You also need to do everything contained in this post here.

Remember that even if your contract says 3 months, if the friend does not leave at that point there is nothing you can do until he's been there 6 months. He has security for a minimum 6 month period under law.

mchale

may_fair wrote: »

Also note that there is a vast range of other legal obligations which apply when you grant a tenancy, and deposit protection is just the tip of the iceberg.

Deposit protection & Gas Cert, what else??

Dodgysailor

Thanks for your help!

may_fair

mchale wrote: »

Deposit protection & Gas Cert, what else??

Obligation to ensure electrical safety
Obligation to ensure furnishings comply with fire safety regs
Repairing obligations under s.11 LTA 1985
Further potential liability for repairs/improvements if served notice under HHSRS/Housing Act 2004
Obligation not to illegally evict or harass T (Protection from Eviction Act 1977)
Obligation to provide address for serving notices (s.48 LTA1987)
Obligation to provide EPC

G_M

mchale wrote: »

Deposit protection & Gas Cert, what else??

Everything (and more..!) mentioned in the link in my earlier post.

G_M

may_fair wrote: »

Obligation to ensure electrical safety
Obligation to ensure furnishings comply with fire safety regs
Repairing obligations under s.11 LTA 1985
Further potential liability for repairs/improvements if served notice under HHSRS/Housing Act 2004
Obligation not to illegally evict or harass T (Protection from Eviction Act 1977)
Obligation to provide address for serving notices (s.48 LTA1987)
Obligation to provide EPC

Insurance. Many short term/accidental landlords asume their existing insurance can continue.

It will be useless as the insurer will reuse to pay out once they find out there was a tenant there at the time of your claim.

House burnt down? Tough! You're £300,000 out of pocket!