Family rental situation

[Icedlatteplease]

My parents have a small rental property that they have have "let" to my useless male relative for the last 2 years.

The original intention was that he paid a small amount of rent. He hasnt and has pleaded poverty. Useless relative wanted a contract DP said ok but you cant use it to claim anything because theres nothing to put on our tax returns.....

You can see where this is going

Now useless relative wants a written confirmation that he is actually paying rent according to DM for universal credit. Which he isnt. I've told her she absolutely cant, which she does agree too. But both of us are worried what he has got himself, and potentially them , into.

I fear a benefit fraud investigation (he already I suspect is claiming he is unemployed while actually doing a small niche but actually not very profitable cash in hand sideline that he wont keep accounts for).

But I'm worried the position he's leaving my parents in. How worried should I be? I suspect they are going to need a lawyer. I have a horrible feeling urgently but I dont want to panic them unnecessarily. I think they have been incredibly naive but they are trying to support their family. (Hes been going through family court and DPs are trying to stop him losing the kids)

Can anyone help?

I'm not sure your DP will have any problems. He isn't paying them rent and they won't lie about this. Does the contract stipulate a rental amount?

Yes it does specify an amount apparently although I haven't seen whether it is a proper rental arrangement (possible in my parents case) or a back of napkin type of thing. He paid it a couple of times at the start but not after

Even if the contract states a rental amount that doesn't mean it would confirm to anyone that he's ever actually paid rent which is why I suspect he's now asking your DP to confirm he's been paying rent.
Your DP MUST not lie & say he's been paying rent if he hasn't as they could potentially be seen to be complicit in fraud.
A rental contract with this relative is only an agreement in principle to pay a set amount per month.

Your DP MUST not lie & say he's been paying rent if he hasn't as they could potentially be seen to be complicit in fraud.

I've told them this. They've said they wouldn't which I think is probably genuine. And that they will contact a solicitor which I very much dont think they will.

My concern is if he says he paid cash and mum and dad cant prove otherwise or if the benefit office decide mum and dad wrote the contract in the full knowledge he would claim.

I'd also report his sideline business to hmrc