Recently, a landlord contacted me for advice about renting her property. It had been her mother’s house, which she had inherited. I provided her with information about landlord registration, safety requirements, and legal obligations.
A couple of weeks later, I followed up to see how she was getting on.
“Oh,” she said, “turns out my friend is looking for a place to rent, so I said she could have it. Since it’s my friend, I’m not going to bother with all the legal stuff — she just needs a place to stay for a while!”
While I’m happy she secured a tenant easily and is comfortable with her choice, in my experience, it’s even more important to have the legalities in place when renting to friends. Here’s why:
- Set Clear Expectations: You need to establish a legal and official footing. Both you and your tenant need to understand the rights and responsibilities of the arrangement. Specify the rent amount, payment due dates, and how it should be paid. Avoid being vague about finances.
- Address Payment Issues: If a problem arises with rent payments, a tenancy agreement provides a clear reference for both parties. It outlines the consequences of non-payment and the steps you’ll take if rent remains unpaid.
- Handle Deposits Properly: Legally, you must lodge the deposit in an approved tenancy deposit scheme. This protects both you and your tenant. Agreeing to informal terms like “just leave it tidy” may lead to disputes if expectations differ.
- Manage Repairs: Tenants must know how and when to report repairs. I’ve seen cases where tenants avoided reporting issues, fearing it would increase costs for their landlord friends. In one instance, a small ceiling leak turned into a costly roof repair.
- Ensure Safety Compliance: Without valid safety certificates, you are not only breaking the law but also risking invalidating your insurance. In case of an incident, your insurance provider could refuse to cover claims.
- Provide Proof of Residence: Without a formal agreement, your tenant may struggle to prove their residence for legal or financial matters.
- Maintain Boundaries: Clear boundaries are essential. You need to balance your role as both landlord and friend. Let your tenant know when you are acting as a landlord and when you are simply socializing. Encourage any official matters to be addressed by email to avoid confusion.
Renting to friends can work well, but it can also strain friendships if not handled properly. Cutting corners might seem convenient, but it could lead to costly mistakes. By treating your friend like any other tenant, you’re protecting both your investment and your relationship.
Final Thought: You are still legally bound by all landlord legislation, and your friend remains protected by tenant rights, even without a formal agreement. It’s always best to do things by the book.
Need help navigating landlord responsibilities? Reach out to me, and I’ll guide you through the legal steps to ensure a smooth, stress-free tenancy for both you and your tenant!