Picture this: you’ve got a spare property, and a friend or family member in need of a place to stay. It seems like the perfect match, right? But before you hand over the keys, it’s crucial to consider the complexities that come with mixing personal relationships and property agreements. Renting to loved ones can be a double-edged sword, offering convenience and camaraderie but also carrying the potential for misunderstandings and disputes. In this exploration of the nuances of familial and friendly tenancies, we uncover the dos and don’ts, offering a roadmap for navigating the delicate balance between personal connections and property dealings.
When considering involving family, and friends, or offering special deals in property arrangements, it’s imperative to adhere to established standards and procedures. If you’re contemplating renting to a family member or friend, it’s crucial to treat the arrangement with the same level of professionalism as any other tenancy agreement.
One key aspect is ensuring that if you’re placing a family member or friend as a tenant, you use an Assured Shorthold Tenancy (AST) agreement and conduct thorough referencing. By following proper procedures, you establish clarity if you need to evict them. Having everything documented and legally binding ensures that in case of any disputes, you have the law on your side.
In legal matters, verbal agreements or informal arrangements often hold little weight in court. Therefore, it’s essential to document all terms and agreements, including any special deals or arrangements, in writing. Utilizing an AST agreement not only provides a clear framework for the tenancy but also streamlines the process if legal action becomes necessary.
By adhering to established standards and documenting all agreements, you mitigate the risks associated with renting to family and friends. It’s crucial to prioritize clarity and professionalism in all property transactions to safeguard your interests and maintain positive relationships.
Jump on our upcoming seminar, “One Great Property Idea,” or set up a 1-to-1 session with our Gladfish property expert. Just call +442079236100 or send us a message on our website.
