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Renting to relatives.


stoggieman
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Hi all

 

My son and his family have to be out of their rented property very soon due to the fact that he has lost his job and his partner is pregnant and the landlord will not entertain any dhss in his property. He has applied for several jobs but without succsess. My wife and I have decided to buy a property for them they will lease it from us at a reasonable rent. We have never been down this path before and would like any info fron anyone who has knowledge of this sort of thing. Will my son be able to claim housing benefit if his father is the landlord and what other pitfalls are we likely to incurre? We are doing this to help them not has a money making scam and want to make sure both sides are well within the law.

 

Peter

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Never go into business or rent to friends or family, it always ends in tears!! I use to rent a house to a cousin of mine, worked for a month or two then he started to take the pixx! Money was tight for him and he knew that I would be lenient on him so he made late payment and some time not the full amount!

If it had been a normal tenant then I'd have kicked them out but because it was family it made it awkward! I didn't buy the extra house to make a monthly profit, just wanted to cover the cost of the mortgage on there but I ended up have to put money in every month so was actually out of pocket!

 

Hope you don't have the same problem

 

Royal

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We have never been down this path before and would like any info fron anyone who has knowledge of this sort of thing. Will my son be able to claim housing benefit if his father is the landlord and what other pitfalls are we likely to incurre? We are doing this to help them not has a money making scam and want to make sure both sides are well within the law.

 

Peter

Do you really want to own a rental property? they can be great or can suck the life out of you and when your son and partner move what then? It depends on the market in the area your financial situation etc but it could be a whole lot cheaper to pay his rent for a few months rather than buy somewhere.

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Never do business with friends or family, if something goes wrong with the house are they going to step up and repair it like drains or roof etc or will you have to do it as it your property you are liable for it.

erm major stuff like that is always the landlords responsibility! Benefit of renting no maintenance costs!

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Hi all

 

My son and his family have to be out of their rented property very soon due to the fact that he has lost his job and his partner is pregnant and the landlord will not entertain any dhss in his property. He has applied for several jobs but without succsess. My wife and I have decided to buy a property for them they will lease it from us at a reasonable rent. We have never been down this path before and would like any info fron anyone who has knowledge of this sort of thing. Will my son be able to claim housing benefit if his father is the landlord and what other pitfalls are we likely to incurre? We are doing this to help them not has a money making scam and want to make sure both sides are well within the law.

 

Peter

 

I would say admirable intentions, he's your son so do all you can for him within reason, as for him taking the Mick I'm sure you no him better than most.

If it was my son I'd do all I could to help him

 

Seek proper advice from the citizens advice, they give confidential, impartial brilliant help.

 

Well done sir

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I would say admirable intentions, he's your son so do all you can for him within reason, as for him taking the Mick I'm sure you no him better than most.

If it was my son I'd do all I could to help him

 

Seek proper advice from the citizens advice, they give confidential, impartial brilliant help.

 

Well done sir

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Hi All

Thanks to all for the input so far. I have the means to buy my son a house infact I have done this allready last week and we hope to have him and his family in residence in the next few days. The problem he was in was no fault of his and it caused my wife a great deal of stress this as now gone and we can now get back to normal. Wife has to see to me due to an accident and the stress was pulling her down she is now like a new woman. I take on board what several people have said about renting to relatives being not a good idea but when we go he will cop for the lot as he is our only child so in a way we can watch him with part of his ineritance and help him out at this very bad time. I want him to realise he has responsibilities and work towards his future. He is a good lad never been any problems and worked for me untill I sold out after the accident not long after his maridge folded and I am sure it was caused by the hours he worked for me. It is just the finer leagal points that we need to sort. His partner is going to the citizens advice to see what they have to say and I shall draw up a contract that he will sign when he moves in. The property is very modern and he will only need to pay a small rent this is to make him realise that he has commitments if anything happens further down the line I might move in myself or if the housing market picks up we may sell so it is a no lose situation. Once again thanks for the advice to date.

 

Peter

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Do yourself a favour, sit down with your son and make a list of things you expect, and what he expects, (rent level, review, repairs, bills, length of tenancy and what to do if he can not pay as there is nothing worse then seeing someone buy a new tv when they have not paid the rent,,, friend of mine did this and his parents were not impressed.) do this now and when issues arrise it is not a problem, do not do it and leave it and it might, I say might as it may never be an ssue, but it could go wrong and the stress your wife was under before will be far worse if you have a major fall out.

 

Good on you though for helping your family, would be nice to think I would do the same for my little one if she ever needed it.

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Well done to you mate.

But he cannot claim housing benefit for a property rented from a family member.

If yours and his surname is different you may get away with it though.

 

Neil. :)

 

 

He (your son) can claim housing benefit in certain circumstances, I have made inquiries about this and you should ring your local council and ask them hypothetically trying not to give your name, it is a grey area.

But you must have a short hold tenancy (in my opinion)for everyone's sake as has been said before. If your son left or fell out with the partner then she might be hard to get out.

 

Best of luck. :good:

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Can the landlord legally kick them out because he has lost his job? I don't think so. If DHSS are willing to pay his rent the landlord can't object. Not his business. Another avenue to explore with Citizens Advice.

But he can apply to retain the property, which means they wont be able to stay long term. If they are near the end of os agreement then it's easy to do.

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But he still has to give them "reasonable time" to find somewhere else. The courts guidance on this is two years. They can still apply for an extension after that if they can show there are no arrears.

After that time it is the legal responsibily of the council to house them if they have not intentionally made themselves homeless. Don't move out whatever you do.

Edited by Vince Green
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Really I thought under an assured short hold it was 2-3 months notice?

Not if there is a baby and the alternative is making a family homeless. The courts will always take the lenient view because its easier to just maintain the status quo. If there are no arrears the landlord hasn't really got much of a leg to stand on. He can easily be made to look like the villain of the piece which in this case is probably true. If he intends to re-let the place then he is just objecting to the tennant out of bigotry. The CA should be able to make mincemeat out of him. Different if he wants to move back in himself.

 

Even if it doesn't work out the council are legally obliged to step in. Another reason why the courts are reluctant to grant posession

Edited by Vince Green
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Hi All

Many thanks to all who have given advice on this matter to date. My son,s present landlord has done nothing to the property for several years. When my son moved in he had to sign a tenancy agreement and part of the agreement stated no dhss. When my son lost his job he found out that his partner was pregnant. She has left her job as she could not cope with a high pressure job and the pregnancy at the same time. My son,s landlord appears to want them out so he can re lett the house for a greater amount. he is a unscrupilus person and the sooner my son and his partner are gone from his grasp the better.In this neck of the woods there are very few houses available to rent at a reasonable rate and no councill accomodation what so ever. We do intend getting a tenancy agreement drawn up when he moves into the new place. I also have been informed that he can get housing benefit providing I or my wife do not live at the same address we will have to inform the inland revenue and pay tax on any rent paid to us by our son.It is my intention to rent the house to him for about 10 years then I will give them it. This is to make them aware of values and to get them on the property ladder though I cannot see them ever wanting to move has the new house is in a great area and only about a mile from some very good bass and cod fishing. If it was not for the fact that I am chairbound I would live there myself and let them have my present property. Once again thanks to all who have replied.

 

Peter

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It is my intention to rent the house to him for about 10 years then I will give them it. This is to make them aware of values and to get them on the property ladder though I cannot see them ever wanting to move has the new house is in a great area and only about a mile from some very good bass and cod fishing. If it was not for the fact that I am chairbound I would live there myself and let them have my present property. Once again thanks to all who have replied.

 

Peter

Hope it works out for you Peter, definitely worth getting some sound financial advice on how to most effectively manage the situation.

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