Can my son be the landlord?

pennypincher61

I've just found out that I have to register as an HMO and pay higher late payment rate for not knowing about it.

I live abroad, my son and 2 friends share a house owned by me.

The requirements for the HMO aren't too hefty although I would have to make a few additions, but the council tax issue is crazy as I would be liable, and ultimately would have to increase their rent etc

It's the principle really and regulation for the sake of it I resent.

if my son was the landlord and had 2 friends living there it would not be classed as an HMO.

Does anyone know if it's easy to appoint him as landlord, what the procedure is and any pitfalls there may be from that.

I really don't want to have to get rid of a tenant when her agreement is up but can't be doing with cumbersome rules for having 3 people living there, it's too difficult to manage from afar.

mrginge

Rent the whole place to your son.
He has the other two as lodgers.

pennypincher61

that's what I was thinking... but then I would still be the landlord wouldn't I?
and it would still be classed as an HMO?

HappyMJ

Yes you'll be the landlord...your son would be the tenant with permission to have lodgers. The lodgers pay your son and your son pays you. If there are no lodgers for any period your son must still pay you the monthly rent in full. You son would be responsible for the full council tax bill and your sons lodgers do not pay it but your son would take some of their rent payments to him and use that to pay the bill.

booksurr

what is your objective?

if you need an income then there is no option but to be the (ultimate) LL

as HMO has caught you out, can I ask if you are compliant with the income tax rules for overseas landlords?
http://www.hmrc.gov.uk/international/nr-landlords.htm

pennypincher61

this sounds excellent.
so I would amend my sons rental agreement with a clause to say he can have lodgers.
so he would then write them some sort of agreement I assume.
could the lodgers still be on the electoral roll if they don't pay the council tax?

and of course I would need to deregister as a C4

all sounds too good to be true... I've been so uptight over all this...!

Confusedandneedhelp

pennypincher61 wrote: »

I've just found out that I have to register as an HMO and pay higher late payment rate for not knowing about it.

I live abroad, my son and 2 friends share a house owned by me.

The requirements for the HMO aren't too hefty although I would have to make a few additions, but the council tax issue is crazy as I would be liable, and ultimately would have to increase their rent etc - yes but they wouldnt notice as the money they pay to CT would be paid to you instead.

It's the principle really and regulation for the sake of it I resent.

if my son was the landlord and had 2 friends living there it would not be classed as an HMO. no it wouldnt be a HMO. Just rent it to him alone and he can have whatever he wants. But would be liable to Tax, just like u.

Does anyone know if it's easy to appoint him as landlord, what the procedure is and any pitfalls there may be from that.

I really don't want to have to get rid of a tenant when her agreement is up but can't be doing with cumbersome rules for having 3 people living there, it's too difficult to manage from afar.[/QUOTE]


Replies above in red

Confusedandneedhelp

pennypincher61 wrote: »

this sounds excellent.
so I would amend my sons rental agreement with a clause to say he can have lodgers.
so he would then write them some sort of agreement I assume.
could the lodgers still be on the electoral roll if they don't pay the council tax?

and of course I would need to deregister as a C4

all sounds too good to be true... I've been so uptight over all this...!

Yes they can be on electoral role.

booksurr

pennypincher61 wrote: »

all sounds too good to be true... I've been so uptight over all this...!

it is
there would still be 3 households resident in the property whether your son had them as lodgers or not

as such, responsibility for HMO compliance would transfer to your son, depending on whatever selective licence rules the council has in place

the Housing Act definition of HMO is with reference to the number of households and whether they rent all or only a part of the property. Lodgers rent a part so it would remain an HMO
As it appears the council is chasing you for HMO status then it appears that in your area selective licensing applies down to the level of at least 3 households

pennypincher61

yes I'm registered as Nr1 and just done my tax return.
HMO haven't caught me out, as I'm on their database as c4 they could have informed me.
its the principal of it all really... it works well as a house share. having to pay £650 as late payment for something I knew nothing about and all the extra bits like submitting floor plans council tax changes etc etc ate easy to do if in same country.
just makes me feel like having just 2 tenants for an easy life.
but all 3 are very happy and a shame to make anyone leave.

HappyMJ

pennypincher61 wrote: »

this sounds excellent.
so I would amend my sons rental agreement with a clause to say he can have lodgers.
so he would then write them some sort of agreement I assume.
could the lodgers still be on the electoral roll if they don't pay the council tax?

and of course I would need to deregister as a C4

all sounds too good to be true... I've been so uptight over all this...!

Lodgers don't tend to have written agreements....it's just a verbal agreement...pay the rent every week on a particular day if you don't pay it you leave next day...that's basically the whole agreement.

The lodgers can register to vote themselves. Paying or not paying council tax has no effect on voting rights.

If the amount your son receives is higher than the rent a room scheme allows he'll have to allow for tax on the excess or show what his profits are from letting rooms so the HMRC gets the correct amount in tax.

Do you have an EPC and a gas safety certificate? It's your responsibility to get them so you'll have to get someone other than your son (who would be the tenant) to get them.