What form of AST - daughter + 3 other students sharing

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    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

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