Renting to friends - to do or not to do?!

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    Renting to friends - to do or not to do?!

    Hi again,

    An ex-colleague of mine has just contacted me to say she is interested in renting my flat from me. My initial thought is that this would be a great idea as I know her and she is responsible, tidy etc etc but....I have also heard that it is generally a recipe for disaster renting to friends...

    Any thoughts/ advice on the matter would be gratefully received!

    Thanks in advance for your help

    #2
    I think it depends on the friend! Some of mine i would let to and with others, i would try to avoid it. I think the major advantage in your situation is that if you are going to try to manage your property from abroad it might be a huge help to have someone you know living in your property.

    I didnt reply to your other threads but i personally wouldnt manage a property from abroad so if you are intent on doing this i think it would be helpful to have someone you know living in your property.

    I would still do all the paperwork in the official manor though.

    Comment


      #3
      I think this is fraught with difficulties.

      If you really want to do this, you need to sit down with your friend and agree that renting the property is a business transaction, and nothing to do with friendship. No 'favours' because they're a bit short this month - if they trash the place, 'sorry' won't be enough.

      Deal with them exactly like anyone else - reference them, credit check them, get a guarantor if necessary, take a deposit (and protect it). If things go wrong, follow due process exactly as you would for someone you don't know.

      If you treat them differently, they will expect leniency when they can't pay the rent - and that is something you probably can't afford.

      Have you considered rent-guarantee insurance?

      Comment


        #4
        It must be a business transaction as recommended above. Also, rent guarantee insurance is a first class idea as it will save some of the unpleasantness which may wreck the friendship if you find yourself seeing your friend in the county court for repossessions and CCJ's for unpaid rent. At least that job will fall on th insurance company's shoulders.

        P.P.
        Any information given in this post is based on my personal experience as a landlord, what I have learned from this and other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person.

        Comment


          #5
          Originally posted by Snorkerz View Post
          Have you considered rent-guarantee insurance?
          Originally posted by P.Pilcher View Post
          Also, rent guarantee insurance is a first class idea as it will save some of the unpleasantness which may wreck the friendship if you find yourself seeing your friend in the county court for repossessions and CCJ's for unpaid rent. At least that job will fall on th insurance company's shoulders.
          Wow, I'm brilliant even when I don't know why! Excellent point about the advantage of insurance P.P. - I hadn't thought so deeply.

          Comment


            #6
            Answer is simple, DONT DO IT. If you search my other messages I am now in a mess and stand to lose a lot for RENTING TO A FRIEND, avoid at all costs at is WILL end up trouble. When your a friend (and I have a signed tenancy agreement and guarantor) they think they dont have to comply with anything and in law they dont. Its all a risk but friendships will no longer exist. My friend was perfect, etc. etc. until I moaned about the grass being 3 ft high, now I can even view my own house until shes out next week (hopefully).

            Use a agency to do all the usual checks no matter who you chose but dont do a friend. Mine was 100% trustworth, tidy, etc. could never thank me enough for helping her out.

            Comment


              #7
              Originally posted by googley View Post
              Answer is simple, DONT DO IT. If you search my other messages I am now in a mess and stand to lose a lot for RENTING TO A FRIEND, avoid at all costs at is WILL end up trouble. When your a friend (and I have a signed tenancy agreement and guarantor) they think they dont have to comply with anything and in law they dont. Its all a risk but friendships will no longer exist. My friend was perfect, etc. etc. until I moaned about the grass being 3 ft high, now I can even view my own house until shes out next week (hopefully).
              While I understand your fustrations, this same scenario could have happened with any tenant.

              Comment


                #8
                wow - lots of food for thought in there! Thank you everyone for your comments. I will give it a lot of thought as I have heard other such horror stories about renting to friends but iif I do go ahead I will definitely make sure I do all the necessary legal preparations etc. Thanks again!

                Comment


                  #9
                  Words of the late great Les Dawson come to mind: "A friend in need is a pest- get rid of him!"
                  JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                  1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                  2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                  3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                  4. *- Contact info: click on my name (blue-highlight link).

                  Comment


                    #10
                    Never was a truer word spoken - (in jest) by a professional comedian!

                    P.P.
                    Any information given in this post is based on my personal experience as a landlord, what I have learned from this and other boards and elsewhere. It is not to be relied on. Definitive advice is only available from a Solicitor or other appropriately qualified person.

                    Comment

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