Lodger on benefits

princessdon

Only thing I would add is that you need to ask your mortage company for their permission

Have relevant insurance and do the relevant tax forms.

I don't think the fact you know them personally would make a difference.

nimbo

you can buy a kind of tenancy agreement at places like WH Smiths especially for lodgers probably worth the couple of quid....

McKneff

Lay down the ground rules before the move in.

Re food, toiletries, cooking, washing. etc.

markymanc

I'm trying to keep away from words like 'tenancy' - I understood that with a lodger should things not work out then you can simply end the agreement and ask them to leave?

McKneff

You are right to avoid the word tenancy, simply because they wouldnt be tenants, they would be lodgers.

However, in fairness, you must give them some sort of reciept, even if its just a 'receipt' book, dated and signed or initialled when they pay the rent. copy for you copy for them. Even one of them little blue invoice books which are double numbered with carbon paper between the two pages.

CKhalvashi

assj wrote: »

The only thing I would say is consider how to charge Council Tax.

As he is on benefits he can claim some Council Tax Benefit.

But when I did this (exactly the same) I included the Council Tax within the rent, clearly as above they don't pay it within the rent.
When I told him to claim Council Tax benefit he could not as I had included it "free" with the rent, so all in all I messed up what he could claim - and what I could expect to be paid as he didn't have enough to pay more...

I don't know the correct way around this, but someone here must.

I would agree with some above and put the rent as high as possible, that way the Council will pay as near to the LHA as possible. You never seem to get the going rate when dealing with people on benefits, well not single people anyway! I don't think they get enough money to pay what you need them to and live, but that's my opinion and I have never claimed any!

I used to charge £400PCM for my room, we are in a residential area in the West Midlands.

Rent + 50% of CT on any agreement, however this may not work with lodgers.

I will check with the other housing specialist in the morning.

CK

Tehya

My son was a lodger at his friend's house for a short while last year. He couldn't have claimed Council Tax Benefit as he's was neither a tenant or home owner so had no responsibility for it. He was entitled to the full amount of (one room rate) of Local Housing Allowance. There were never any questions to answer about the friendship apart from the form asking as to whether they were related to each other.

And it's a yes to your other question as his friend could have told him to leave at any time. My niece was recently told to leave a colleague's home, one she'd shared for 3 years as his new girlfriend was jealous so he gave her a weekend to find somewhere else. Not a great way to treat someone you work closely with but she had no right to challenge his decision.

Morlock

Voyager2002 wrote: »

The council would need to be satisfied that this was a genuine commercial arrangement and that you were charging a fair market rent for the room.

Regulated tenancies and 'fair rents' were abolished in 1989.

CKhalvashi

Morlock wrote: »

Regulated tenancies and 'fair rents' were abolished in 1989.

Substitute 'fair' for 'reasonable'

CK