A word of caution. Renting from relatives

[estellyn]

The important things to do are to be truthful about the arrangement to the LA at the beginning of the claim or tenancy (if contemplating moving into a relative's/friend's property mid claim then broach with the LA prior to moving), and once the tenancy has been approved by the LA, make sure there is a verifiable rent payment process - bank payments rather than cash payments, and no cash going the other way - it's still fraud if you pay £600 rent a month to your mum via standing order, and then your mum gives you £600 cash each month (had a case like this).

 

I wouldn't recommend an agency due to the additional fees involved.

[estellyn]

estellyn Thx for the reply. The reason for this thread is to highlight the minefield involved by renting from a close relative. Even though the cost may be a little cost to the landlord it would appear in practise the best way forward?

 

 

I agree that informing the LA that the LL is a relative could save issues in the first place. But maybe looking at the bigger picture,even if the LA accept the arrangement, the LL could "share" the proceeds of the HB claim with the tenant.

 

 

As you can clearly see this is indeed a difficult one. Especially that some parents own more than one home, in some cases a large portfolio of property. As shown in this news story the fraud aspect can cause serious consequences for both the tenant and LL.

 

fees to the tenant can also be high from an agency and it guarantees nothing - just an intermediary between one bank and another. It still doesn't stop landlord passing money back to the tenant.

 

In my experience, a large property portfolio can assist in proving a valid rental arrangement as one of the factors looked at by LA's is whether the property would be rented out to someone else if the relative wasn't renting it.

 

In the end all you can do is to try to do everything above board and do payments by bank, have a proper tenancy agreement and keep LA updated of all changes.