can your parents be your landlord

jampotjamie

My parents own a second house which would be ideal for myself. I am presently on income based job seekers allowance. If I were to rent it of them for the going rate would I be entitled to housing benefit or would I have to find another landlord.

Nicifer_noonoo

Seeing as they're your parents, couldn't they let you live there rent free or at a reduced rate until you're back on your feet and working?

jampotjamie

The thing is they need the income from the property so there not really in a position to do that. Just thought if I could get housing benefit then they get a good tennant and normally the council from what I've heard never pay the full rent so if my parents accept what the council offer then I would be better off than renting from another landlord.

Nicifer_noonoo

The DSS has told me to sell my property if I need cash...and I have one, not two!!

I hope you find a solution soon. Good luck.

dmg24

The only way that you can claim HB when renting from a close relative is where there is evidence of a commercial agreement in place. From what you have said, in particular the point about your parents setting the rent to a level that HB would cover, this would not be a commercial agreement.

jampotjamie

Can you be more pacific not sure what you mean in terms of commercial agreement. Do you mean you must have a tenancy agreement because there would be a shorthold tenancy agreement in place. Thanks in advance.

patchwork_cat

Hi
Yes as long as it is not a contrived tenancy. You will need an agreement and evidence of rent paid eg rent book. You must not live in the house with your parents if that is the case you are what is called a non dep. Then of course the rent officer also enters the equation. This is the situation about 10 years ago when I was a HB officer and I believe it is still the case. If you want upto date info then your best bet is to get the CPAG book -I would think that your library will have it. It was the book we used - as an interpretation of the legislation.

dmg24

Yep, pc is correct, a rental agreement is not enough in itself, because it could be seen that the document has just been produced to support your claim.

The LA will take various factors into account in deciding if the agreement is commercially valid or not. For instance, if your parents are only charging you £50 rent on somewhere that would cost you £100 on the open market, this would imply that the terms of the arrangement is based on you being related to them (i.e. they would not offer the property to a complete stranger at the knocked down rate). Also, if a true rent figure is detailed on the agreement, they may look for actual evidence of this amount being paid.

Are you not able to continue living where you are, until you are in employment?

jampotjamie

Thankyou very much for your help tried everywhere to get this information. :beer: will go to library on monday thanks

affordmylife

I rented my parents second property some years ago and claimed housing benefit.

We had a solicitor draw up a rental agreement and a rent book as per normal.

I claimed housing benefit and they paid part of the rent and I had to pay the remainder from my family tax credit (as it then was - i think).

Of course you wouldnt have to pay the difference that housing benefit didnt cover if your parents didnt insist. Sadly mine did insist. Although they later allowed my sister to live in it without paying the top up amount because she couldnt be bothered to get a job whereas I worked and had two babies. Yes I am bitter - sorry.

Suffice to say that yes it can be done.

patchwork_cat

For your info this has been discussed here http://www.rightsnet.org.uk/dc/dcboard.php?az=show_topic&forum=102&topic_id=6013