What type of tenancy for an Annex for a couple working for me?
What type of tenancy should I have for an Annex?
I have a newly converted separate barn conversion in my garden. I am thinking I’d like to get a couple in there to help both in the house and garden. However, if I want them to move on, is there any way I can get vacant possession without a court case?
Naturally, if we fall out, I’m not keen on having a couple with whom I am at war 45 meters from my front door who are not paying rent for a year while I go through the courts.
I understand that I can give it to them for free and just change the locks. However, if they pay me either rent or by salary sacrifice, then I need a court order. Is this correct?
Is there any other option?
Regards, Peter.
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Member Since January 2020 - Comments: 559
11:25 AM, 20th December 2023, About 2 years ago
The documentaion required will depend on the nature of the employment. The relevant term is “better perfomance of duties”. For example a cook living next door to their place of employment will have different rights than if the property provided is ten miles away.
The employment contract should cover off provision of work related accommodation in the first instance.
A tenancy may be required, but subject to details of the employment.
Whilst it can be easier to remove an employee from their house, it’s never quite as easy as changing the locks.
Member Since October 2013 - Comments: 1630 - Articles: 3
11:31 AM, 20th December 2023, About 2 years ago
Pretty much.
If they don’t have to pay rent and still get ‘normal’ wages for their job, then the accommodation provided is rent free, and they can be evicted without a court order when the employment ends. But if they don’t have to pay rent but get lower wages, they are paying ‘money’s worth’, and must be treated as if they do pay rent. You must then apply for an eviction order.
I guess the question is, what is ‘normal’ rent?
Member Since May 2021 - Comments: 46
1:00 PM, 20th December 2023, About 2 years ago
You’re talking about tied accommodation. This may help: https://england.shelter.org.uk/housing_advice/private_renting/accommodation_that_comes_with_your_job
Member Since April 2021 - Comments: 189
1:44 PM, 20th December 2023, About 2 years ago
It would be a service occupancy
https://www.netlawman.co.uk/ia/service-occupancy-or-tenancy-the-differences
and benefit in kind for tax, you will be their employer and have to arrange with HMRC for tax
Member Since June 2019 - Comments: 761
9:12 PM, 20th December 2023, About 2 years ago
And pension contribution, oh and employers insurance………..
Member Since April 2018 - Comments: 45
10:59 AM, 21st December 2023, About 2 years ago
Thank you chaps. I think on balance I will let a charity called “Something to look forward to” use it. They link terminally ill cancer patients who cannot afford a holiday to people who can offer holiday accommodation free of charge to the patient.
Happy Christmas! Peter
Member Since October 2013 - Comments: 1630 - Articles: 3
1:17 PM, 21st December 2023, About 2 years ago
Reply to the comment left by Peter at 21/12/2023 – 10:59
Well done!