Can I rent a house to a friend on benefits?

victoriavictorious

davidmcn wrote: »

I keep reading this as "friend with benefits", which would at least be more interesting.

Oh stop it! :rotfl:
Now that I've read that, I can't UNread it!

PokerPlayer111

davidmcn wrote: »

I keep reading this as "friend with benefits"

haha im glad someone said it. :T

shortcrust

I wouldn’t let a property to a friend. Money owed to friends often comes at the very bottom of the list. It’s difficult to push a friend for payment when they’ve just told you how broke they are and how they’re in the depths of despair etc. I’ve twice written of chunky sums I’ve lent to friends.

FBaby

It appeals to me as I've known him for 20 years and trust him.

]
Trust is not enough. Depending on their reason to claim benefits, he could be doing fine one day, and have nothing to pay rent the next. They can be apologetic, sorry, willing to try to sort out the issue, but that won't mean they will be able to pay. It then comes down to them not paying, letting you down, but still have a roof over their head, or finding themselves on the street. When face with that choice, most pick a roof over their head over their friendship, and you end up in the same situation, trying to find a way to pay your mortgage.

This can happen with any tenant, but it hurts a lot more when you see it that you did your friend a favour in the first place.

agatham

I think it won't be possible to let someone stay based on benefits. Even if its possible, what if he doesn't get benefits always. It would be safe for you to ensure that there is constant flow of income for the person to whom you are letting the house. With that you can be assured of the rent every month.

Comms69

agatham wrote: »

I think it won't be possible to let someone stay based on benefits. Even if its possible, what if he doesn't get benefits always. It would be safe for you to ensure that there is constant flow of income for the person to whom you are letting the house. With that you can be assured of the rent every month.

What if they lose their job?

saajan_12

This might seem like a good solution that fits both of your circumstances right now but things can change quickly.

* What if friend need to move -> what happens to your investment, as it's expensive to disinvest.

* What if friend loses benefits / has other expenses so cannot pay? Its much more difficult to get a replacement source of income -> Are you happy not receiving rent? Evicting through courts & bailiffs? Finding new tenant? Even if you agree and legally you're right, it can ruin a friendship if you make friend homeless.

* What if you fall out and friend stops paying / damages property?

* What if you need to sell and use the capital? Are you happy evicting?

* What if you need to increase rents to meet your costs?

..

LandyAndy

Keen_Investor wrote: »

As the title says. I have a friend on Benefits, his housing benefit is paid for.. he's on Personal Independence Payment, I won't go into the details why that's his business.

He's in no way related to me. I'm considering buying a flat in cash and renting it to him for the going rate. It appeals to me as I've known him for 20 years and trust him. Albeit I would still keep it completely legal with tenancy agreement etc.

Just wondered if there were any laws/rules preventing this.

Cornucopia wrote: »

Does your lender (if you have one) allow Benefit Claimant tenants?

Why don't people read what is written?

ReadingTim

LandyAndy wrote: »

Why don't people read what is written?

Because not everyone has the same interpretation of what a cash buyer means. In point of fact, everyone is a cash buyer - it's just the source of that cash which differs.

Crashy_Time

bobbymotors wrote: »

You probably can rent it to him, but it's a bad idea to rent to a friend.

Especially one with benefits.....