PLEASE READ BEFORE POSTING: Hello Forumites! In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non-MoneySaving matters are not permitted per the Forum rules. While we understand that mentioning house prices may sometimes be relevant to a user's specific MoneySaving situation, we ask that you please avoid veering into broad, general debates about the market, the economy and politics, as these can unfortunately lead to abusive or hateful behaviour. Threads that are found to have derailed into wider discussions may be removed. Users who repeatedly disregard this may have their Forum account banned. Please also avoid posting personally identifiable information, including links to your own online property listing which may reveal your address. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!

Letting residential property for storage

Hi
i have a house converted into two flats.  The bottom flat has been rented by an elderly person for the last 15-20 years at a low static rent.  The top flat has been empty for a number of years and requires substantial renovation.  
For the last few years, the elderly lady has been using one of the rooms in the top flat to store her belongings, an informal agreement between us.  
The cost of keeping the top flat empty is now more than the income generated from the bottom flat.  Mainly due to the 200% empty property council tax.  Can I let the top flat residential property as storage?  And if so will that reduce the council tax bill?

Comments

  • freesha
    freesha Posts: 435 Forumite
    Part of the Furniture 100 Posts Name Dropper
    Why not increase her rent? Why has it been low and static for so long?
  • user1977
    user1977 Posts: 18,072 Forumite
    10,000 Posts Seventh Anniversary Photogenic Name Dropper
    I don't see a difficulty with giving her a residential tenancy for the other flat, but does she want to become responsible for the council tax? (at the normal rate - she's not going to get single person discount for an additional property).
  • sheramber
    sheramber Posts: 22,852 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    you let the  flat , she uses as she wishes.

    A storage facility would have to pay business rates.
  • silvercar
    silvercar Posts: 49,715 Ambassador
    Part of the Furniture 10,000 Posts Academoney Grad Name Dropper
    Doubt you can create a tenancy, with all the AST rights and obligations if no one is going to live in it. It would be a contract without the extra rights of a tenancy. 

    You could just increase the rent and add a clause to the tenancy to allow for storage rights.
    I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.
  • sheramber
    sheramber Posts: 22,852 Forumite
    Part of the Furniture 10,000 Posts I've been Money Tipped! Name Dropper
    That would mean increasing the rent to cover the 200%  council tax. 
Meet your Ambassadors

🚀 Getting Started

Hi new member!

Our Getting Started Guide will help you get the most out of the Forum

Categories

  • All Categories
  • 351.4K Banking & Borrowing
  • 253.3K Reduce Debt & Boost Income
  • 453.8K Spending & Discounts
  • 244.4K Work, Benefits & Business
  • 599.7K Mortgages, Homes & Bills
  • 177.2K Life & Family
  • 258K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 16.2K Discuss & Feedback
  • 37.6K Read-Only Boards

Is this how you want to be seen?

We see you are using a default avatar. It takes only a few seconds to pick a picture.