Renting to Family Member ??

Raven_k42

Hi All

My wife has an apartment...purchased some years ago with a mix of inheritance and mortgage. She's registered with PRTB and has managed lettings on her own over the last few years. Apartment due to become vacant early next year.

Our eldest daughter is in receipt of HAP and has to leave her place in the next three weeks. She's looking for somewhere else at the moment.

If she can't find a place (getting increasingly difficult)...would it be possible for my wife to rent her apartment to our daughter ?. My wife don't want to complicate things from the rental side...plus we wouldn't want to do anything which would compromise our daughter's HAP status.

Any advise appreciated.

Thanks, K

jimmycrackcorm

Of course it is possible to rent to your daughter. The only problem is that the state won't accept having to pay you for it.

I rented a room to one of my brothers, as he was unemployed for some time he applied for and received rent allowance.
They knew he was renting from me, his sister, wasn't a problem.
Don't see why HAP would be any different, she needs a place to live, that they will be paying for, ye have a property that you will be renting out anyway.

Stheno

bubblypop wrote: »

I rented a room to one of my brothers, as he was unemployed for some time he applied for and received rent allowance.
They knew he was renting from me, his sister, wasn't a problem.
Don't see why HAP would be any different, she needs a place to live, that they will be paying for, ye have a property that you will be renting out anyway.

I'm fairly sure rent supplement did not pay out if parents were the renters landlord and the same might apply to HAP

Spanish Eyes

Talk to the relevant Council anonymously. Even better send them an email.

The issue is straightforward enough, they should be able to give you a stock answer to this question.

I'm sure it has occurred before now. Emphasise that daughter is HAP approved.

Stheno

Stheno wrote: »

I'm fairly sure rent supplement did not pay out if parents were the renters landlord and the same might apply to HAP

Checked this, they did have an exclusion and renters renting from parents were required to prove they were genuinely renting, don't know what criteria were used for that

Marcusm

Stheno wrote: »

I'm fairly sure rent supplement did not pay out if parents were the renters landlord and the same might apply to HAP

I don't think there was a blanket ban; my understanding is that you couldn't claim rent supplement where renting from your parents living with you but if there was a bona Fide separate tenancy of a separate property then it could be considered. That being said, I suspect it's subject to significant scrutiny. Bearing in mind that the parents' have a history of letting and the child has a history of renting.

Stheno

Marcusm wrote: »

I don't think there was a blanket ban; my understanding is that you couldn't claim rent supplement where renting from your parents living with you but if there was a bona Fide separate tenancy of a separate property then it could be considered. That being said, I suspect it's subject to significant scrutiny. Bearing in mind that the parents' have a history of letting and the child has a history of renting.

Yes that's exactly what it says on citizens info.

Given the daughter is currently on hap that might help

Raven_k42

Thanks for all the replies. I can understand why this might be looked on with some suspicion. We are thinking of a formal tenancy arrangement, registered properly etc. Rent needed to pay mortgage and we will be letting it to someone anyway.

Berrieblast

Hi there , I know this is 3 years later but just wondering what the verdict with this was , I am currently in the same situation, thanks in advance