Can a private landlord rent to a family member

[potter1]

Hi

I am a private landlord and have rented one of my properties to a family member. Due to change in circumstances they had to apply for housing benefit and it has been knocked back, because the property has never been rented out befor and they say it is not a commercial bases. They have also failed to get a council tax reduction. Has anyone else had this problem we have now been told to go to tribunal services.
Could this be a breach of human rights, they are entitled to live somewhere.

[Amethyst]

Re: Can a private landlord rent to a family member

I had a similar problem as I rented a property from my father, however he had previously let the property to other tenants, and as I'd have been paying full market rate, they accepted that and we had a full tenancy agreement as evidence which was accepted. (as it happens they found another separate reason not to give me housing benefit afterwards but that's by the by)

Has the family member been renting off you for long before the housing benefit application and paying full market rate? If so that could help, as could some form of declaration that you are letting to them on a commercial basis not as a favour. I would think that you have other property rented out would help the case too.

What is the reason for the council tax reduction?

[des8]

Re: Can a private landlord rent to a family member

Hi and welcome
I'm not sure of the current position, but a couple of years ago the situation we hit was as follows:
The LA will be looking at both contrivance (ie set up to take advantage of HB) and commerciality.
Is there a tenancy agreement in place and are you charging a commercial rent, ie one that gives you a profit?
If the arrangement is non-commercial, they won't be entitled to benefit.
However, the onus is on the LA to prove contrivance/non-commerciality, which is not so easy, especially if you can prove (rent book/bank account receipts?) rent was paid.

I'm sure others will be along with more advice soon.

[potter1]

Re: Can a private landlord rent to a family member

I had a similar problem as I rented a property from my father, however he had previously let the property to other tenants, and as I'd have been paying full market rate, they accepted that and we had a full tenancy agreement as evidence which was accepted. (as it happens they found another separate reason not to give me housing benefit afterwards but that's by the by)

Has the family member been renting off you for long before the housing benefit application and paying full market rate? If so that could help, as could some form of declaration that you are letting to them on a commercial basis not as a favour. I would think that you have other property rented out would help the case too.

What is the reason for the council tax reduction?

They have been living in the property since 0ct 2013 and I have not had a penny except hassle from the council. We are even having to pay council tax eventhough she is on a low income. They are saying that it is because it has never been rented out befor ? We only got the property May 2013 as we had excemption on council while we did it up, tuff we aren't getting anymore. It now has to go to a tribunal. As for the full market rate it is less than others pay but I think it daft amounts people are charging to rent properties these poor people have to live without worrying about money. I know as I can remember when we had to do it many moons ago with our kids it hard.

[Amethyst]

Re: Can a private landlord rent to a family member

To help with getting the right benefits though you have to show it is a commercial rental.
That means tenancy agreement and market rate rent, and show that any shortfall (if the property has too many bedrooms etc) would be paid.

What are your family members basic circumstances? ie why would they be entitled to council tax reduction and housing benefit if they lived in another landlords property.

I never got housing benefit because my ex husband lived in the house I'd left and half owned so had over £16k in savings, according to HB peeps, it didn't seem to matter I had no access to those funds at all, and had three children to support and couldn't get council Tax or housing benefit and was solely on tax credits and income support. They don't do sympathy and I paid my dad what I could for rent for about three years. I was on the council list but only got a council house after my new partner had moved in. I repaid my dad the missed rent when my ex husband sold the house. I'd have been up the creek without a paddle If I'd been renting off any other landlord.

[Crazy council]

Re: Can a private landlord rent to a family member

I was a property manager 1993-2003, and i have both rented off and 2 my own family members.

The above posters have it spot on, as long as you can confirm there is no finacial support to her, but.

But, am going to be devil's advocate here ( from there prospective ). If it looks on paper like you have bught your daughter a house and are looking for HB to pay the morgaee, they will fight. As well as the financial technicals of HB payments, ther eare also some confidence type rules.

If you own other property that you rent out, this would work in your favour. But if it looks like above, on paper, you can sort of understand why they fight. See, if you had lived in it before, and was renting it out to pay the morgaee, there would be no problem with a reletive being paid HB, as long as you confirm the details. But if you have just purchased it, then put a relative in, especially if they have not needed to claim HB anywhere else, they will not pay

Did you ever see the sitcom BREAD, that what anyone from a council will think when looking at the claim, without a good explaination from you..