Renting from family and housing benefit

St_pete

FBaby wrote: »

Is £450 the going rate for that type of house, or at you charging £450 because that's all she can afford over what she is receiving? It might be seen as contrieve if you are lowering the price for her when you wouldn't for a stranger.

Going rate is £450 to £480 from the research I've done on letting agency sites.

At the end of the day, I want to make money and that's why I'm doing it. The fact it's my sis in law is convenient as I trust her and know she will look after the house.

Mojisola

As long as you treat her as you would any tenant, including being willing to evict her if she doesn't pay her rent, there's no problem renting to a relative.

St_pete

Mojisola wrote: »

As long as you treat her as you would any tenant, including being willing to evict her if she doesn't pay her rent, there's no problem renting to a relative.

I've told her 100% that when it comes to the rental of my house it's completely business. I can't afford to not let her pay the rent.

pmlindyloo

It is perfectly possible to rent to a family member but, as already said, it cannot be a contrived tenancy i.e set up to take advantage of the benefit system.

No one is going to be able to tell you whether your local authority will allow this but if they refuse you have the right to appeal.

Factors that might be taken into consideration are:

A tenancy agreement set up which is enforced if breached (are you letting through a letting agent?)
Landlord taking on all their responsibilities - gas certificate etc etc
The property has been let out previously to other tenants
A rent that is comparable with other properties in the area
The circumstances of your sister in law (is she renting at the moment?/does she have to move from where she is?/how is she paying rent at the moment?)

St_pete

pmlindyloo wrote: »

It is perfectly possible to rent to a family member but, as already said, it cannot be a contrived tenancy i.e set up to take advantage of the benefit system.

No one is going to be able to tell you whether your local authority will allow this but if they refuse you have the right to appeal.

Factors that might be taken into consideration are:

A tenancy agreement set up which is enforced if breached (are you letting through a letting agent?)
Landlord taking on all their responsibilities - gas certificate etc etc
The property has been let out previously to other tenants
A rent that is comparable with other properties in the area
The circumstances of your sister in law (is she renting at the moment?/does she have to move from where she is?/how is she paying rent at the moment?)

She's isn't currently renting as she lives at home with her mum.

This would also be the first time I rented out a property as Ive only just bought my new family home. It's my current home I'm renting out to her.

The rent is basically the going rate.

St_pete

pmlindyloo wrote: »

It is perfectly possible to rent to a family member but, as already said, it cannot be a contrived tenancy i.e set up to take advantage of the benefit system.

No one is going to be able to tell you whether your local authority will allow this but if they refuse you have the right to appeal.

Factors that might be taken into consideration are:

A tenancy agreement set up which is enforced if breached (are you letting through a letting agent?)
Landlord taking on all their responsibilities - gas certificate etc etc
The property has been let out previously to other tenants
A rent that is comparable with other properties in the area
The circumstances of your sister in law (is she renting at the moment?/does she have to move from where she is?/how is she paying rent at the moment?)

I'm not looking to do this as a favour to her or to play the system. It's a totally legit.

It's just much more convenient that it's my sister in law as I know 100% she will meet the payments and look after the house.

Obviously it's better having someone you know and not a stranger.

pmlindyloo

What are your sister in laws circumstances? Is she living in overcrowded circumstances? Does she have children? How will she afford the 'top up' fees?

Sorry, not trying to bombard you with questions just trying to consider what questions the council might ask in view of the fact that she isn't claiming HB at the moment.

FBaby

It is surprising that the going rate is only slightly over the LHA amount. Have you had a estate agent to actually come and tell you what you could advertise for? That certainly would be good evidence since it has never been rented before.

St_pete

FBaby wrote: »

It is surprising that the going rate is only slightly over the LHA amount. Have you had a estate agent to actually come and tell you what you could advertise for? That certainly would be good evidence since it has never been rented before.

The letting agency told us £450 to £475 is what they would expect us to get for this property.

We would rent it out for £450 even if it wasnt my sister in law.

Would the fact we don't have the same surnames help ?

St_pete

pmlindyloo wrote: »

What are your sister in laws circumstances? Is she living in overcrowded circumstances? Does she have children? How will she afford the 'top up' fees?

Sorry, not trying to bombard you with questions just trying to consider what questions the council might ask in view of the fact that she isn't claiming HB at the moment.

She is registered disabled as she as a illness. She's currently living at her mums house but her step dad has had a stroke and needs care which her mum is doing so it's becoming hard for her mum to look after both.

When she had a meeting with the council she was told her partner would be able to stay at the rented property due to her illness.

The top up fees would only be £18 per month so it's not much to top up really.