Son Wants To Rent Flat

[jpkeates]

There is no need to go overboard and offer free accommodation if he is evicted.
He has to stand on his own two feet, like the rest of us did.

He's actually paying slightly less than the market rent, because I deduct the fees I'd otherwise pay my agent.
I get the same income, he gets a cheaper place to live.

[ram]

They pay the market rent

The question about what I would do if he stopped paying rent?
If I evicted him, he'd be moving back in here anyway.

If your son is paying the market rent, and has no trouble paying the market rent, as you say,
then he should be able to find another property at market rent, no problem.

There is no need to go overboard and offer free accommodation if he is evicted.
He has to stand on his own two feet, like the rest of us did.

[jpkeates]

OP already stated "The flat has no mortgage on it".

Missed that.

For what it's worth, I rent to my son and his girlfriend.
They pay rent (which is the market rent less the fees my agent would have charged me.)

The question about what I would do if he stopped paying rent?
If I evicted him, he'd be moving back in here anyway.
There's zero chance he wouldn't pay rent if he could (and if he wasn't working I'd be paying anyway).

It's not ideal, but life rarely is.

[KTC]

If there's a BTL mortgage on the flat it's possibly a non-starter (and check any landlord's insurance).

OP already stated "The flat has no mortgage on it".

OP, you need to decide whether you want to be a landlord, or whether you want to support your son financially. Both are valid choices, but they don't mix.

[nukecad]

He says he'll get a job to pay his share.

Pigs and wings come to mind.
Tell him if he gets a job, and keeps it, then he'll be able to afford to rent his own property from an unrelated landlord.

BTW Just in case he brings it up.
He'll find that the DWP will not pay Universal Credit Housing Element (which has replaced Housing Benefit) for a family let like this, they see any renting from family members as an attempt at a contrived tenancy. (Which is Benefit fraud).
It takes a lot to convince them otherwise.

He just wants to live in your flat for free. (Like he's been living in your house for free all his life?).
And I'd be worried about him paying the utility bills / Council Tax as well. (Like he's not had to pay bills all his life?).

I have been through similar with a nephew. (Long story - ended up with the property being repossessed and a lot of bills outstanding).

You have been warned by a few people here, letting to family like this often (usually) goes awry, especially when it's young 'adults' involved.

[ram]

Would you be happy for your letting agent to give your flat to a man who has no job, can't pass a credit check, and says he has no job, but promises to get a job once in the flat.
No you would not. You would sack the letting agent if that happened.

It was your sons choice not to earn a wage and be a student, not yours.

The more you wrap people in cotton wool and keep reality from them, the harder it is for them to adjust later.
And when he says he can't afford the rent for 3 months, will you evict him ( you will never get that 3 months back ) .

You will then hear, but Mum, i'm your son, I need your money for the personal choices I have made.

[jpkeates]

How is this tax efficient?
Giving a child money isn't a taxable event, receiving rent is income and taxable.

If there's a BTL mortgage on the flat it's possibly a non-starter (and check any landlord's insurance).

[silvercar]

Parents often provide financial help to their student offspring, this seems a very tax efficient way of doing so. If you have until now provided more direct financial support, this could be an alternative.

[jessa46]

I already own it - before he was born. Getting the runaround from letting agent so tempted to get son in. He says he'll get a job to pay his share.

[mariner]

Did you buy the flat for your student son to live in or did you already own it?

[DPT57]

Dont do it. It has ruined many relationships

[nukecad]

Advise him that you are not happy to rent to family and that if he wants to go ahead he should rent another property from an unrelated landlord.

When he doesn't want to do that it should tell you all you need to know about what he was expecting from 'the bank of mum and dad'.

[jpkeates]

How will your student son be paying for the flat?

Without the issue of it being your son, the answers to your questions (broadly) are yes, a lodgers agreement is adviseable and none.

If either your son or his lodger move a partner in, they'll create an HMO, so you need to make sure that the agreements all prohibit that.

[KTC]

Seriously ask yourself the question what would you do if your son stop paying you the rent he is supposed to? Will you evict him like any other tenant? If the answer is not a definite yes, then don't do it.

[jessa46]

Don't want to sound silly but why? Is it re getting money from son and how he'll take care of it? The flat has no mortgage on it; it's in a very good condition. My daughter says the same as you because she thinks he'll ruin it.