Can we be our Sons Landlord?

[shellonthebeach]

In considering selling the family home and purchasing 2 small flats. One for my husband and myself and one for my two adult sons who live at home after returning from university.
We miss the quieter times being just us two and our sons really need somewhere to live independent lives.
My question is can we be officially 'landlords' and charge them rent on their flat? What is the legal situation? Also both boys are currently looking for full time work if they don't find work can they claim housing benefit and use that as rent money? Im not trying to 'play the system' I'd just rather be their landlord than someone we don't know.

I rent a property off my dad, and have done for a fair few years.
absolutely you can be, you just need to check you have the right mortgage on the property (some brokers will tell you you can’t rent to family I believe..so look into this first & disclose what you plan to do)
I have also claimed UC/HB for rent purposes and as long as they have a tenancy to show, it isn’t an issue ☺️

You can but check the criteria for it to be treated as a proper tenancy by dwp. You would need a standard formal tenancy agreement as minimum, plus carry out your statutory responsibilities as ll. Bear in mind there are income tax liabilities and cgt if you sold in future.

Thank you both for replying, I appreciate it 😊

If they’re looking for F/T work, are they working at all now? Do they pay board from their benefits or wages?

How would you feel if they lived in the flat but didn’t want to pay rent or Thor bills?

Have you budgeted for repairs and upgrades over time for both flats?

We rent a flat to our son. We fill out a yearly tax return and pay tax .

I am in this position as a landlord, I charge well below market rent, and as a previous poster does fill out a tax return every year. I hope that eventually my son will buy the property from me.

I don't think they can pay you using HB. I was in a similar position years ago and at that time you coul don't use HB to pay your parents rent . Things could have changed though .