BTL / renting to parents

[stripes11]

can i have BTL and rent it out to parents who receive Housing Benefit?

Yes but you have to prove the rental to your parents is on a commercial basis. You would need to put the deposit in a scheme, do an epc, gas safety certificate, electrical safety certificate from next year and provide the how to rent booklet. The local authority would then find it difficult to say it is not on a commercial basis.

However if you need a mortgage it is likely renting to a relative is prohibited under the terms and conditions. If paying cash then obviously no problem.

I was going to say the same, most mortgages don’t allow you to rent to family. I know someone who had their mortgage withdrawn in that basis.

I don't think you can claim housing benefit if you're renting from a close family member - check the rules out. All the other rules (gas safety, etc) apply equally whether it's a family member or not.