Agreement between family

Cherylrp

princeofpounds said:

OK, if you're a cash buyer you can do this. But by saying 'gain interest' on a 'deposit.... in a bond', it's clear that you don't have a clue what being a landlord involves.

I don't mean that in a nasty way. Nobody is born knowing. But you really do need to know. The administration has got more complex over the years, and there is no simple way of doing it without opening yourself up to serious risks. You really must read all those links that greatcrested directs you to, in depth. 

You must understand deposit protection. You must understand how to report your taxes. You must understand you health & safety obligations. You must understand the situation you will be in if your sister stops paying her rent entirely (the reason doesn't matter - it could happen - nobody thinks renting to family is a great idea). 

Ok, I will look into it properly, thank you.

lookstraightahead

Cherylrp said:

lookstraightahead said:

You need to read up on everything to do with renting out a property. There are lots and lots of legal issues that you have to abide by, and that protect both you and your sister. 

Ok, back to the drawing board, thanks

I'm sure you've thought of this - can't you gift her some money for a deposit ? 

AdrianC

lookstraightahead said:

Cherylrp said:

lookstraightahead said:

You need to read up on everything to do with renting out a property. There are lots and lots of legal issues that you have to abide by, and that protect both you and your sister. 

Ok, back to the drawing board, thanks

I'm sure you've thought of this - can't you gift her some money for a deposit ? 

You don't NEED to charge an incoming tenant a deposit.

But, if they do pay one, it must be protected.

Cherylrp

AdrianC said:

lookstraightahead said:

Cherylrp said:

lookstraightahead said:

You need to read up on everything to do with renting out a property. There are lots and lots of legal issues that you have to abide by, and that protect both you and your sister. 

Ok, back to the drawing board, thanks

I'm sure you've thought of this - can't you gift her some money for a deposit ? 

You don't NEED to charge an incoming tenant a deposit.

But, if they do pay one, it must be protected.

Ok, now that’s sounds better.  I just felt if she paid a deposit it would be sitting there year after year doing nothing.  This will be her home until we need to sell it and then she can move in with us, if she so wishes.

greatcrested

Cherylrp said:

I’m definitely not trying to ‘evade official channels’.  I trust my sister and just want to give her a home.  She wants the agreement not us and I just wanted to do it as simple as possible, that’s all and not sure the best way to do it hence contacting the forum.  

Your sister is wise and you are.... naive. You should be wanting to do this properly. And legally.

Ok, now that’s sounds better.  I just felt if she paid a deposit it would be sitting there year after year doing nothing.

It sounds like you have not really taken on board the extent of the issues involved. Fine, you can avoid having to protect the deposit by not taking one (not that I recommend this for one minute!). And thus save the peanuts in lost interest.

But that interest pales into insignificance compared to your other landlord costs. Just for starters, an annual Gas Safety Report willcost £45 - £70 (more if you combine a service which is sensible). Each year (unless there is no gas). EPC? Electric inspection(yes, that's a new requirement).

etc etc.

Once again: read

Post 7: New landlords (1):advice & information :see links in next post

Post 8: New landlords (2): Essential links for further information

Cherylrp

greatcrested said:

Cherylrp said:

I’m definitely not trying to ‘evade official channels’.  I trust my sister and just want to give her a home.  She wants the agreement not us and I just wanted to do it as simple as possible, that’s all and not sure the best way to do it hence contacting the forum.  

Your sister is wise and you are.... naive. You should be wanting to do this properly. And legally.

Ok, now that’s sounds better.  I just felt if she paid a deposit it would be sitting there year after year doing nothing.

It sounds like you have not really taken on board the extent of the issues involved. Fine, you can avoid having to protect the deposit by not taking one (not that I recommend this for one minute!). And thus save the peanuts in lost interest.

But that interest pales into insignificance compared to your other landlord costs. Just for starters, an annual Gas Safety Report willcost £45 - £70 (more if you combine a service which is sensible). Each year (unless there is no gas). EPC? Electric inspection(yes, that's a new requirement).

etc etc.

Once again: read

Post 7: New landlords (1):advice & information :see links in next post

Post 8: New landlords (2): Essential links for further information

Thank you, I do intend to and will read up on exactly what I need to do, I know this now and p.s.  I will do it all legally. 

Pennylane

renting to a family member or a friend is never a good idea.  I’ve seen family bust ups and ruined friendships many times.  
It’s also worth remembering if she is on certain benefits and gets behind with her rent you will be expected to grin and bare it because you are “family”. So Universal Credit Etc won’t help out.

Cherylrp

Pennylane said:

renting to a family member or a friend is never a good idea.  I’ve seen family bust ups and ruined friendships many times.  
It’s also worth remembering if she is on certain benefits and gets behind with her rent you will be expected to grin and bare it because you are “family”.  

I hear what you are saying and understand what you are saying and I hope none of this ever happens but if the worse happened we would deal with it.   

Pennylane

Cherylrp said:

Pennylane said:

renting to a family member or a friend is never a good idea.  I’ve seen family bust ups and ruined friendships many times.  
It’s also worth remembering if she is on certain benefits and gets behind with her rent you will be expected to grin and bare it because you are “family”.  

I hear what you are saying and understand what you are saying and I hope none of this ever happens but if the worse happened we would deal with it.   

as long as you are aware and understand that this could cost you money rather than make you money, that’s fine. As others have said, it is vital that you do everything by the book, EPC, EICR, Tenants Rights booklet, Deposit Protection, Gas safety checks, etc etc.  

Cherylrp

Pennylane said:

Cherylrp said:

Pennylane said:

renting to a family member or a friend is never a good idea.  I’ve seen family bust ups and ruined friendships many times.  
It’s also worth remembering if she is on certain benefits and gets behind with her rent you will be expected to grin and bare it because you are “family”.  

I hear what you are saying and understand what you are saying and I hope none of this ever happens but if the worse happened we would deal with it.   

as long as you are aware and understand that this could cost you money rather than make you money, that’s fine. As others have said, it is vital that you do everything by the book, EPC, EICR, Tenants Rights booklet, Deposit Protection, Gas safety checks, etc etc.  

I will do it correctly and I know it won’t make me money but it will contribute to the income that we have both lost due to health reasons.  Thank you all for you help a lot of reading is required I think.