Renting Flat to Daughter

Slithery

Hasbeen wrote: »

https://www.thisismoney.co.uk/money/buytolet/article-4487684/Can-let-property-family-member-no-rent.html

I have inherited a property which I want to let to a family member but not charge them rent. What are my responsibilities as a landlord - are they any different because I'm not making money from this arrangement?

The question in that article doesn't make sense. You are only letting the property if you are receiving consideration in return. If no money (or any other consideration) changes hands then there is no tenancy therefore no landlord.

Slithery

Rosa_Klebb wrote: »

Okay great, I think this is my preference. If I just let her live there, no contract, no payment (she pays for her electricity, water, council tax etc though) then it's as simple as that? No need to declare anything or notify anyone? No legal responsibilities to undertake?

As long as she makes absolutely no contribution to the property, yes.

The minute she pays for any repairs or improvements a tenancy would be formed with all of the additional legal responsibilities.

theartfullodger

Rosa_Klebb wrote: »

........................
If I do rent it would be in my daughters name only, she's absolutely good as gold and could trust her 100%. .............................

Oh dear.......



DON'T DO THIS!



Please, for your & your daughter's sake.

need_an_answer

Slithery wrote: »

As long as she makes absolutely no contribution to the property, yes.

The minute she pays for any repairs or improvements a tenancy would be formed with all of the additional legal responsibilities.

I'm in agreement with what slithery says..however from the OP's perspective I would still suggest that something formal and a LL/tenant situation is created.

OP you seem insistent to allow your daughter to take this on but want to have the flat as an "insurance policy" incase your current relationship could fail....what does that mean or say to you...that you trust your partner and current relationship less than your daughter.

If you are going to have a safety net for one,have a safety net for both situations....

Personally I would sell the flat,while you still own it theres always going to be a bolthole which is never a good way to run with a new relationship,putting your daughter in it is never going to dilute the situation.what you are likely to gain by keeping the property for the next couple of years is minimal compared with its upkeep.

Hasbeen

need_an_answer wrote: »

Thank you hasbeen...alhough the article you have quoted still suggests a "letting" of the property rather than an allowing a family member to live there.


Perhaps its the terminology between "can I let my property to a family member" as opposed to "I will allow my family member to live there"
that is the issue.

Clearly its beneficial to do things the official route,which I would always suggest,but I am still of the opinion that if both parties are in total agreement to just allow occupation it makes neither of them a LL/tenant

Yes it was a question asked that appeard relevent to ops situation. Looking at it my opinion that to all intents and purposes the OP will be a Landlord even if no rent is charged. OP will still have to have to legally satisfy all requirements.

Can do it without but there is a good chance certain authorities will be knocking at door. Especially HMRC. So still think it's a good idea to do it formally and correct.

From link. These are all required irrespective of whether you are letting the property to a family member, friend or complete stranger and it doesn’t matter whether or not you are charging rent.

hazyjo

Hasbeen wrote: »

From link. These are all required irrespective of whether you are letting the property to a family member, friend or complete stranger and it doesn’t matter whether or not you are charging rent.

And if you read the comments, some think it's sponsored, and say they need to get their facts right as it wouldn't be a tenancy if not collecting rent. I'm inclined to agree with the commenters rather than the writer.

Slithery

Hasbeen wrote: »

From link. These are all required irrespective of whether you are letting the property to a family member, friend or complete stranger

I agree.

and it doesn’t matter whether or not you are charging rent.

But if you aren't charging rent, you aren't letting the property. A legal tenancy agreement is a contract outlining an temporary exchange of property for a consideration in return (usually money). Without such consideration, a tenancy can't exist.

Do I become a LL if I let a friend house sit my property whilst abroad for a year? No.

eddddy

I guess some people are expressing opinions based on their own family relationships.

FWIW, I would have no problem allowing a member of my family to stay in my flat in the circumstances you describe - maybe with an informal agreement that they cover the cost of electricity bills etc.

It would only really turn bad if the family member decided to make life difficult for you - I'd trust my family not to do that.


And looking around me, I see lots of examples of parents helping out their children, when the children are starting out in life...

... and the favour is returned when the parents get old and need help from their children.

But I guess that doesn't work for everyone.

Rosa_Klebb

eddddy wrote: »

I guess some people are expressing opinions based on their own family relationships.

FWIW, I would have no problem allowing a member of my family to stay in my flat in the circumstances you describe - maybe with an informal agreement that they cover the cost of electricity bills etc.

It would only really turn bad if the family member decided to make life difficult for you - I'd trust my family not to do that.


And looking around me, I see lots of examples of parents helping out their children, when the children are starting out in life...

... and the favour is returned when the parents get old and need help from their children.

But I guess that doesn't work for everyone.

Yes I think this applies here. Despite some people with other experiences, my daughter is as steady as they come - not a single doubt in my mind that there would be any issues here. Just wanted to do her a favor really whilst the property is vacant.

If I'm going to go through the hassle of proper LL stuff though then I may as well just let it out to someone at full market value. Not sure it would be even worth it for a period of just 2 years.

Hasbeen

Rosa_Klebb wrote: »

Yes I think this applies here. Despite some people with other experiences, my daughter is as steady as they come - not a single doubt in my mind that there would be any issues here. Just wanted to do her a favor really whilst the property is vacant.

If I'm going to go through the hassle of proper LL stuff though then I may as well just let it out to someone at full market value. Not sure it would be even worth it for a period of just 2 years.

Or you can as been suggested do nothing and let her stay there free.
It seems to be the concensus by the posters here.

If you decide to go through the hassle for someone else, to ensure property is safe for them and covered by the relavent safety requirements, safety certificates, etc.etc all thats has been discussed.

Then perhaps you could still do same rather than rent out to someone else?

There would not be any tax to pay but a small amount in the scheme of things to set things up for your daughter.

Only you can decide. Perhaps posting on some of the landord sites will give you more info.