Renting to Family

DEEDIA

My Brother has fell on hard times due to the break up of his Marriage, I have a property but it needs quite a bit of work doing. So I ask, can my Brother live in the House and do the work I need doing, I would not want to charge rent as he will be doing the work required, would this be legal. I know all the main bills would have to be paid. So can a family member live in another family members house for zero rent. if so how do I do it if not what can I do for us both.

cattie

If you are not going to charge him rent then there is no problem. But if he does the house up for you & you then want him to pay you rent & he isn't working, or on a low income & needing to claim housing benefit, then you will hit a problem.

I believe as far as council tax is concerned, he will still be able to apply for help with this if he qualifies, it's just getting help with the rent that will be the problem.

G_M

Sounds like he will be paying rent in kind. The work he does has a value, and is being done in return for a property to live in.

So he is a tenant and you are a landlord. For more on the obligations of a LL, see here.

McKneff

I cant see a problem really, as long as he is not claiming means tested benefits that will be fine.

Does anyone need to know that he is carrying out renovations.

The only problem I can see is that if he is claiming JSA it means he should be job seeking and so should be available for work, but you cant job seek 24/7.

If and when he gets a job he still wont be claiming state benefits so nothing changes really.

G_M

So as well as you circumventing your LL obligations, he will be working and claiming JSA at the same time?

Nice family!

DEEDIA

Thank you for your advice and replys, NO my brother has a Job so will be working 5 Days a week as I do. So as to get the House fit for living in, he will spend his weekends doing the house up.

I had been told before that I could let a family member live in my property free of charge, so if he is working for his keep I guessed it would be okay.

HAMISH_MCTAVISH

DEEDIA wrote: »

So can a family member live in another family members house for zero rent.

Yes. Of course they can.

Hundreds of thousands of people do exactly that every year, and the vast majority will do so without any problems.

if so how do I do it if not what can I do for us both.

In all probability, there is no issue with an informal arrangement so long as you trust your brother not to try and take advantage at some point in the future, ie, by trying to claim a de-facto long term secure tenancy exists.

If you have any doubts, speak to a solicitor who can draw up an agreement.

Make sure the insurance reflects the living arrangement, and it would be wise to get the usual gas safety checks, etc, done regardless of whether a landlord/tenant relationship is established or not.

HAMISH_MCTAVISH

G_M wrote: »

Sounds like he will be paying rent in kind. The work he does has a value, and is being done in return for a property to live in.

I suspect that is far from clear.

If the work is done as a condition of living in the house, you may be right. It could be regarded as rent in kind.

If the offer to reside in the house is not conditional to rent in kind being paid, but the family member voluntarily chooses to do some works anyway as a thank you or to make living there more comfortable for themselves, it probably would not be regarded as rent in kind.

So he is a tenant and you are a landlord.

That can't be established either way from the limited information provided.

If the OP has any doubts, they should take legal advice. Far too grey an area to determine on an internet forum.

PasturesNew

There is no problem with what you suggest, but to see problems you have to alter the circumstances.

How do you feel if he moves a mate in?
Or a girlfriend?
What if he loses his job, gets another one straight away but it leaves him no time to do your house up?
What if you think he's not doing enough work, or doing the wrong work, or the work worngly?
What happens if he does it up and you then want to rent it out to somebody else, or sell it?

What's the bigger picture?