Private Tenants Agreement - Help Please

Keith1985

Hi All,

Quick outline of my current situation....

I'm currently renting a room in a shared house and my girlfriend and I would like to move in to our own house together. We have been looking over the past week or so and have found a couple of houses we both like. However, her Granddad owns a lovely little 2 bedroom house in the next town along from where we looking which he rents out to provide an income. His tenants are about to leave and he has offered it to us at a pretty cheap rate.

+'s
- Cheap rent which means we can carry on with some serious saving for a house deposit (hoping to be able to afford to buy in 2 years)
- OH's Granddad knows the house will be well looked after.
- We would do this without an agent so no fees for references etc etc.
- OH's Granddad doesn't want us to pay a deposit, so less initial outlay for us.

-'s
- Having a financial agreement with a family member worries me slightly.

I have suggested we draw up a tenants agreement so everything is black and white. Does anyone have any experience in doing this? Any tips?

All advice, thoughts and opinions greatly appreciated!!

AnnieO1234

The biggest problem would be what would happen if you broke up? Without paperwork the chances are you'd be kicked out immediately, and would have little if any recourse.

X

Keith1985

That's a good point, and one I should have added in the negative column! I guess if we split up I would just move out. I wouldn't lose out on my share of the deposit (as we won't have to pay one). I won't have any money tied up in it at all other than the monthly rent.

Having said all of that, I fully intend to marry this girl so don't think this would happen

Thanks for the reply.

Prothet_of_Doom

I would suggest that Your G/F has an formal agreement with her Grandad, and you have a house mates agreement with your G/f , so that she can throw you out if you split up.

Not that you would, but it would be the "gentlemanly thing to do"

Keith1985

That sounds like a very sensible approach, thanks for the post!

DaftyDuck

I'd normally say not to mix family & business but, in this case, it does sound like a good deal. However, is granddad reputable, friendly & loving - will he fix stuff that goes wrong (and it will)? Or, is he just going to let you manage as you are family and can cope?

If the house is well-maintained, he's more likely to want to look after these things, but you should expect that you'll have to do a few more running repairs than you might with a fully commercial arrangement. You shouldn't have to but, if you plan on that happening, you should be fine.

Congratulations, by the way... "I fully intend to marry this girl" sounds like ti came from a Jane Austen book!. I do so hope you are a single man in possession of a good fortune....

Keith1985

DaftyDuck wrote: »

I'd normally say not to mix family & business but, in this case, it does sound like a good deal. However, is granddad reputable, friendly & loving - will he fix stuff that goes wrong (and it will)? Or, is he just going to let you manage as you are family and can cope?

If the house is well-maintained, he's more likely to want to look after these things, but you should expect that you'll have to do a few more running repairs than you might with a fully commercial arrangement. You shouldn't have to but, if you plan on that happening, you should be fine.

Congratulations, by the way... "I fully intend to marry this girl" sounds like ti came from a Jane Austen book!. I do so hope you are a single man in possession of a good fortune....

Her Granddad is reputable yes, he is an established landlord of several properties in the area and has said this will be the same as any other in terms of his responsibilities. Actually, he's lovely and is genuinely excited about the opportunity to help us out, we are very lucky as I know most people don't get things like this put on a plate for them. I am determined that we don't waste the opportunity and use it as a platform to be able to save more so we can eventually buy a place of our own.

I'm reasonably handy when it comes to DIY so more than happy to get my hands dirty if required.

I can assure you it wasn't from Jane Austen, I'm far too young to even know who that is! Haha

sandsni

On the negative side (from the Granddad's point of view), what would happen if, for some reason, you and your GF were unable to pay the rent? (e.g. lost job, illness etc.). Would he be prepared to evict you? Would you go quietly or expect him to accept the loss of rent because he's family?


I think you're absolutely right to have a proper written tenancy agreement as it protects everyone involved.

G_M

I think sandsni's warning is the major potential drawback. Evicting family friends is not easy (emotionally) but grandad might be backed into a corner if you defaulted on rent (through no fault of your own).

And yes, gf to be sole tenant, with you having a lodger's agreement with her is best way.

Granddad may need to check mortgage if he has one. Some BTL mortgage leders prohibit letting to family (precisely because of the above), but it may not apply to him or he may not have a mortgage.

traineepensioner

Sounds like a good idea, as long as you're not claiming housing benefit. :-)

Keith1985

We have a decent emergency fund saved already which would see us through 3 months if we were both out of work at the same time, neither of us have ever been out of work though so hopefully this won't happen.

If push came to shove and we couldn't afford the rent then my own pride would evict me! A very valid point though and one I will bring to the table, thanks all.