What form of AST - daughter + 3 other students sharing

Collapse
X
 
  • Filter
  • Time
  • Show
Clear All
new posts

    What form of AST - daughter + 3 other students sharing

    Hi,
    I am trying to sort out AST for my daughter + 3 students sharing a house.
    I am LL but not planning to charge her any rent. (tax reasons)
    All four will share bills.

    Question is how to write the AST?

    Separate ASTs for each the other three rooms?
    Single AST signed by the other three Ts?
    Or all four sign single AST and I just don't charge her portion of the rent?



    thanks.

    #2
    Is the property mortgaged? If so, does the lender prohibit letting to family members?

    Comment


      #3
      Originally posted by anselld View Post
      Hi,
      I am trying to sort out AST for my daughter + 3 students sharing a house.
      I am LL but not planning to charge her any rent. (tax reasons)
      All four will share bills.

      Question is how to write the AST?

      Separate ASTs for each the other three rooms?
      Single AST signed by the other three Ts?
      Or all four sign single AST and I just don't charge her portion of the rent?



      thanks.
      You are better with a joint AST than 4 singles.

      Your last suggestion worked well for us in the same situation.

      The AST they all sign should make them all jointly and severally liable for rent, damages and bills. It is up to you (should the need arise) whom you pursue for default on rent or damages. (The bills are the utility company's problem. If utility companies will only accept one or two names, they may wish to share the pain of this as it's the account holder(s) who will be pursued. If poss, tell them to put all names on each account).

      Also, although the other three may well be your daughter's friends and you may think they ar simply delightful, trustworthy people now, don't dispense with any of the ususal formalities re getting guarantors and a deposit (protect this in a scheme within 14 days of receiving the whole deposit from one named lead tenant, preferably not your daughter). Always issue receipts for rent and be professional about charging them for any damage, cleaning, etc. Otherwise you may get taken for granted a little and end up subsidising other people's children, not just your own, to have a good cheap year!

      I have - touch wood - managed to avoid this pitfall so far, but I gather it is not uncommon among parents of students who are also their landlords. As long as you are businesslike about the arrangements and make it clear to them in a friendly way before they start the tenancy, what you will and won't be happy with (as you would with any group of tenants), it should work well.

      Good luck.
      'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

      Comment


        #4
        Originally posted by Poppy View Post
        Is the property mortgaged? If so, does the lender prohibit letting to family members?
        No, it isnt mortgaged.

        Comment


          #5
          Originally posted by mind the gap View Post
          You are better with a joint AST than 4 singles.

          Your last suggestion worked well for us in the same situation.

          The AST they all sign should make them all jointly and severally liable for rent, damages and bills. It is up to you (should the need arise) whom you pursue for default on rent or damages. (The bills are the utility company's problem. If utility companies will only accept one or two names, they may wish to share the pain of this as it's the account holder(s) who will be pursued. If poss, tell them to put all names on each account).

          Also, although the other three may well be your daughter's friends and you may think they ar simply delightful, trustworthy people now, don't dispense with any of the ususal formalities re getting guarantors and a deposit (protect this in a scheme within 14 days of receiving the whole deposit from one named lead tenant, preferably not your daughter). Always issue receipts for rent and be professional about charging them for any damage, cleaning, etc. Otherwise you may get taken for granted a little and end up subsidising other people's children, not just your own, to have a good cheap year!

          I have - touch wood - managed to avoid this pitfall so far, but I gather it is not uncommon among parents of students who are also their landlords. As long as you are businesslike about the arrangements and make it clear to them in a friendly way before they start the tenancy, what you will and won't be happy with (as you would with any group of tenants), it should work well.

          Good luck.
          Mny thanks. So if I go for the final option as you suggest and lets say the rent is £250pcm each, then I would do a single AST for £1000pcm for all four to sign, yes?

          Then I would simply decide not to collect my daughters share.

          Will the tax man be happy that I have not taken her share as income (and of course I can only offset 3/4 of expense), given they all signed the AST for the full amount?

          Comment


            #6
            Originally posted by anselld View Post
            Mny thanks. So if I go for the final option as you suggest and lets say the rent is £250pcm each, then I would do a single AST for £1000pcm for all four to sign, yes?

            Then I would simply decide not to collect my daughters share.

            Will the tax man be happy that I have not taken her share as income (and of course I can only offset 3/4 of expense), given they all signed the AST for the full amount?
            If you post this question on the tax forum, I'm sure someone more knowledgeable than me will be able to help. Do you mean 'only offset three quarters of the income against expense'?

            That doesn't sound right to me, but I'm not an expert when it comes to tax.
            'Pause you who read this, and think for a moment of the long chain of iron or gold, of thorns or flowers, that would never have bound you, but for the formation fo the first link on one memorable day'. Charles Dickens, Great Expectations

            Comment

            Latest Activity

            Collapse

            • Reply to MCOL & PCOL
              by OS7
              Just to close of this thread : telephone hearing took place and after a lengthy hearing - the defendants application to set aside CCJ was dismissed and a CCJ with an instalment order was ordered by the Judge. He said he saw no real prospect of the defendant defending the claim, however to resolve he...
              30-11-2021, 05:44 AM
            • MCOL & PCOL
              by OS7
              Hello Everyone,

              Via Section 21,i have recently been granted a possession order for my property to happen in middle Jan 2021. The tenants are claiming housing benefit and they owe rent arrears and monies just under £7000 - I have applied for MCOL and now currently waiting to request judgement...
              04-01-2021, 14:16 PM
            • Reply to Am I a lodger or a tenant?
              by AndrewDod
              Even if you are an AST "tenant", you are tenant of Sarah, not a tenant of Sarah's landlord. If Sarah ceases to be a tenant that does not make you a tenant of Sarah's landlord (nor does any deposit you paid to Sarah have anything to do with Sarah's landlord).

              Sarah's right of...
              29-11-2021, 23:05 PM
            • Am I a lodger or a tenant?
              by Bert1e
              Hello, I have a question about my legal status in private rented accommodation.

              I live in a private rented house. The entire house is rented from the landlord by one individual (let's call her Sara). Sara has a bedroom in the house and a lot of stuff in the cupboards all around the house....
              28-11-2021, 12:13 PM
            • Reply to Section 21 and Gas Certificate
              by jpkeates
              There's not normally an issue with the gas certificate timing other than the very first one.
              That said email is not how you give people documents like that, unless the tenant has agreed to be served them by email.
              29-11-2021, 18:16 PM
            • Section 21 and Gas Certificate
              by Mr. Sparkle
              About 3 weeks ago I had a gas certificate issued.

              I forgot to email the tenant a copy of the document.

              I plan to evict the tenant with either a Section 8 or 21 and want to know whether there is any issue regarding the delay to give the tenant the gas cert?

              There...
              29-11-2021, 14:15 PM
            • Reply to Section 21 and Gas Certificate
              by theartfullodger
              No idea if the GSC you have is OK or not (1st place, you don;t say) or what the timing is for when it should be served. So difficult to answer.

              But...


              s8 not an issue

              s21 see
              https://nearlylegal.co.uk/section-21-flowchart/

              - there's...
              29-11-2021, 17:50 PM
            Working...
            X