What type of tenancy for an Annex for a couple working for me?

What type of tenancy for an Annex for a couple working for me?

16:28 PM, 19th December 2023, About 4 months ago 7

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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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Comments

Graham Bowcock

11:25 AM, 20th December 2023, About 4 months 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.

NewYorkie

11:31 AM, 20th December 2023, About 4 months 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?

yl2006

13:00 PM, 20th December 2023, About 4 months ago

Crossed_Swords

13:44 PM, 20th December 2023, About 4 months 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

Paul Essex

21:12 PM, 20th December 2023, About 4 months ago

And pension contribution, oh and employers insurance...........

Peter

10:59 AM, 21st December 2023, About 4 months 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

NewYorkie

13:17 PM, 21st December 2023, About 4 months ago

Reply to the comment left by Peter at 21/12/2023 - 10:59
Well done!

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