Son lives in parents property wanting to rent out a room?

Son lives in parents property wanting to rent out a room?

14:21 PM, 9th December 2021, About 2 years ago 8

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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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Comments

Deb

17:16 PM, 9th December 2021, About 2 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.

Judith Wordsworth

10:41 AM, 10th December 2021, About 2 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.

DPT

16:29 PM, 10th December 2021, About 2 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.

Xiaolei

23:18 PM, 27th February 2024, About 3 months 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.

Xiaolei

23:27 PM, 27th February 2024, About 3 months 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,

Deb

23:33 PM, 27th February 2024, About 3 months 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.

Xiaolei

23:55 PM, 27th February 2024, About 3 months 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 ?

Deb

0:21 AM, 28th February 2024, About 3 months ago

Reply to the comment left by Xiaolei at 27/02/2024 - 23:55
Yes she was

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