Son lives in parents property wanting to rent out a room?
2:21 PM, 9th December 2021, 4 years ago
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Hi all, a quick question: I’ve got a landlord (Mr and Mrs) who live in Wales and who own a property in the Midlands.
I’ve been speaking to the son who lives in the property his parents own and the parents want to rent out a room for about 6 months.
Is this technically classed as a resident landlord or not?
Would it be a Lodgers agreement or a full AST?
Many thanks
Luella
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Member Since July 2013 - Comments: 61
5:16 PM, 9th December 2021, About 4 years ago
I did this when my daughter lived in one of my properties. She was my tenant and became the resident landlord of the lodger and therefore provided a lodgers agreement to the lodger. The AST was the agreement I had with my daughter.
Member Since January 2015 - Comments: 1435 - Articles: 1
10:41 AM, 10th December 2021, About 4 years ago
Reply to the comment left by Deb at 09/12/2021 – 17:16
I did exactly the same. The rent goes to the son who can claim under the government rent a room scheme for up to just over £7k pa rent tax free. What he then does with the rent would be between son and parent I would think.
Member Since October 2020 - Comments: 1137
4:29 PM, 10th December 2021, About 4 years ago
The landlord doesn’t have to be the owner, they could authorise their Son, (I would suggest in writing) to act as landlord for the lodger. This should be ok if only letting to 1 lodger because the exemption for 2 lodgers from HMO regulations only apply to owner-occupiers. The rent would probably need to be paid to the Son, but would actually be due to the parents, as owners, and they would be liable for any tax.
There are regulations governing properties let to lodgers and I would suggest that the Son gets some help to understand the legal obligations.
Member Since May 2021 - Comments: 31
11:18 PM, 27th February 2024, About 2 years ago
Reply to the comment left by Deb at 09/12/2021 – 17:16
Did your daughter live in the property rent free or she needed to pay you rent under the AST you contracted with her?
I am in similar situation and would like to put in place the same arrangement.
Thank you.
Member Since May 2021 - Comments: 31
11:27 PM, 27th February 2024, About 2 years ago
Reply to the comment left by Judith Wordsworth at 10/12/2021 – 10:41
Hi Judith,
May I know whether you signed a AST with your child and, if yes, did your child actually paid you under the AST?
I am trying to put in place the same arrangement involving my son and a lodger.
Best wishes,
Member Since July 2013 - Comments: 61
11:33 PM, 27th February 2024, About 2 years ago
Reply to the comment left by Xiaolei at 27/02/2024 – 23:18
It was a tenancy just as a normal ast would be so she did pay rent.
Member Since May 2021 - Comments: 31
11:55 PM, 27th February 2024, About 2 years ago
Reply to the comment left by Deb at 27/02/2024 – 23:33
Thank you Deb for the prompt response.
Am I right to assume that your daughter must have been working to be able to afford paying you rent ?
Member Since July 2013 - Comments: 61
12:21 AM, 28th February 2024, About 2 years ago
Reply to the comment left by Xiaolei at 27/02/2024 – 23:55
Yes she was
Member Since June 2024 - Comments: 1
12:59 PM, 16th June 2024, About 2 years ago
Hi all,
I have the exact same situation but in reverse. I own my main house in the uk but my parents live there for free (so i have no rental or tennancy agreement with them). Now would they be able to rent out a room to a lodger under the rent a room scheme and keep the money up to 7500 tax free? What situation does this put me in as the owner?
Member Since October 2020 - Comments: 1137
9:19 PM, 16th June 2024, About 2 years ago
Reply to the comment left by Bob Richardson at 16/06/2024 – 12:59
You can given them authority to rent a room and they would become lodger landlords. The rent would be presumed by HMRC to be yours and youd have to pay tax on it. I dont have any experience of whether you can claim rent-a-room relief if you’re not the landlord.
Bear in mind that your parents would have legal obligations as landlords .