As a landlord, you have probably considered renting to family members at some point. Renting to family members comes with its own set of pros and cons.
With that said, considering renting to family members should be given careful thought. As expected, doing a financial exchange to those who are close to you will present unexpected challenges.
The best thing to do in order to avoid any problems like this is to go about the renting process just like you would with any other tenant. Follow the same tenancy agreement you’ve always used with previous clients.
Even if you have confidence in renting to a family member, everybody involved should still be clear on the expectations and responsibilities. Making everything clear as crystal from the get-go will prevent misunderstandings in the future. Otherwise, these misunderstandings might also affect your personal relationships.
As the landlord, you will also need a regulated buy-to-let mortgage. It’s a regulated mortgage product overseen by the Financial Conduct Authority (FCA). This gives the consumers an assurance that they will receive an appropriate product for their needs.
You also need to ask for professional tax advice. This is especially true if you are planning to allow your tenants to rent for free. This means your property will not generate and income, and it will not fall within the income tax regime.
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