Should I Rent My Kent Property to Family Members?

Here are some questions you should ask yourself before you
rent your property to family or friends.

Do they need to
sign a tenancy agreement?

Yes, yes, and yes again! They might be family, but they’re also
your tenants and both parties need to know what is expected of them. For
example, they might say they want to stay for 12 months but then leave after
just six. Without a tenancy agreement, there’s nothing to stop them – putting
your income at risk.

Should I take a
deposit?

This is a personal decision that you need to make, as there’s
no legal requirement for a landlord to take a deposit. However, it is a good way
to protect your property and any contents from damage.

Similarly, by having a professional inventory carried out
before they move in, both parties know the exact condition of the property and
how it should be left.

Should I do a
tenant reference check?

Asking family for personal finance details? It might make
you feel awkward just thinking about it, but it’s an essential step of the
rental process.

While you may think you know your family/friends’ financial
background, it’s still worth making extra checks. Referencing will ensure that
your potential tenant can pay the rent and highlight any issues with previous
landlords.

Are there any
legal issues I should be aware of if I rent to family/friends?

Not exactly, but renting to family/friends could cause
problems if you have a mortgage. In fact, a lot of lenders are quite strict
about this issue, and you may need to ask their permission before you move family
in.

This is because the lender could be concerned that you’d
charge family members less rent, or be more lenient if they didn’t pay – both
of which could impact loan repayments.

Renting to friends or family can often be a great option,
but it’s one you need to consider carefully and go into with your eyes wide
open.

For more advice on
anything and everything related to rental property in Kent, call our lettings team today.