Letting property to a friend

MeOnMonSavExp

Does anyone have experience of letting a property to a friend?

We only want to let for a short period of time and will be trying to sell the property at the same the time. Our friends need a property only for a short time and are happy to make it available for viewings.

Although we would be bypassing lettings agencies, I am sure there are aspects of a landlords responsibilities that we won't be able to and shouldn't bypass.

Can anyone give me a checklist of things we have to or should do?

RAS

Do not do it.

Assuming England or Wales

1. You have to comply with the full legal rules re Gas Certificates, deposit protection etc.

2. The minimum period before you can take action to remove the friend is 6 months and it could take 3-6 months to get them out after that.

3. Tenants have the right to quiet enjoyment which means that they do NOT have to let your potential purchaser in the house.

4. No buyer in their right mind will exchange without vacant possession and many will not even offer on a tenanted property.

The rules in Scotland are more difficult.

19lottie82

Chances are it should go without any major problems, but if it doesn't, it could be very costly, and timely to get your property back. Remember your friends will be tenants and you will be their landlord.... If they decide they don't want to leave, you'll be stuffed.

The old don't mix business and pleasure rule should be applied here if you don't want any risk.

19lottie82

Plus I would be very concerned with RAS's point 4.... This should be your main concern here.

A tenant will put a lot, if not, most buyers off. Best to market it empty.

BitterAndTwisted

I wish I had a quid for every thread I've read on here about the total misery which has ensued from people getting into a business arrangement with friends or family.

Please, DO NOT DO IT!

MeOnMonSavExp

Thanks.

You're all a bunch of Jeremiahs .... but you're probably right.

Having a rethink.

phill99

Never let a house to somebody you aren't willing to evict.

sandsni

If you would trust this friend with your life then let them your house. If not, it could be a recipe for disaster. I know it's not what you want to hear. There are good examples of letting to friends going well, which you won't read about on forums like this, but if it goes badly it could ruin your house sale and your friendship.


Think very carefully before you go ahead with it. As others have said, you will be a landlord with all the responsibilities that entails and they will be your tenant with all the rights that entails.


Have you thought about what you would do if your friend caused a lot of damage, either accidentally or through negligence? Do you know how they keep their current home? Or if they discover they have nowhere else to go at exactly the time you want them to vacate?

Better_Days

Do not rent to anyone you would not be prepared to evict.

My brother rents a property in Liverpool which sold at auction for £50k. We could have got a BTL mortgage BUT, I know that I would not be prepared to evict my brother, SIL and nephews if for example my brother lost his job and couldn't pay the rent.

This arrangement could turn out to be much more trouble than it is worth and could well ruin your friendship. Don't do it. The property will be much easier to sell with no tenants in - and any buyers solicitor will be well aware of your friends rights as tenants even if your friends say that the arrangement is temporary.

dancingfairy

Worst case scenario is that they stop paying rent and you have to wait for the minimum term of 6 months before you even think about applying to court to get them out, plus they could damage your property and delay/prevent your sale (either on purpose or otherwise). You also run the risk of loosing a friend if things change for either of you and you need to change the plans.
You will need to comply with things like gas safety etc or you could be prosecuted. If you didn't register the depoist you could be sued for up to 3 the deposit etc.
No one in their right minds would offer on a tenanted property as they would know you couldn't get the tenant out for a good 6 -9 months legally and they would need vacant posession.
Whilst on first glance it sounds like a good idea, there are just too many downsides. If you can live with the risks then fair enough but there must be simpler options....
df

G_M

OK- just to contradict the doomsday-sayers (and myself elsewhere!):

This could work well. Assuming your friend is genuinely helpful with viewings /keeps the place looking nice, reassures buyers he's leaving soon, and does leave when required...

But you will be a landlord, with associated legal responsibilities/tax liabilities/mortgage consent issues. So read:

New Landlords (information for new or prospective landlords)