UK Landlord Forum / Life

hello everyone hope someone can help. I have a 3 bedroom house that I'm going to let my younger brother move into, the house is mortgage free and I wont be charging him rent. so basically he will be just paying his own bills and generally looking after the house, this is long term.
Will I need to do a tenancy agreement? as its not like I'm renting it to him,
also he would like to have our nephew move in with him, who is a student, so would there be any problems with this?
many thanks

You are brave! No,I don't think you have to do anything if this is just a casual arrangement.However,in case problems arise in the future I think you really should get some formal arrangement set up.A friend has just had the harrowing experience of serving an eviction order on her daughter plus partner and toddler.

hi thanks for the reply, yes I can see your point, maybe I should just do a 6 month agreement for my brother, and I think I read that our nephew would be just like his lodger, and not need to put him on the agreement ?. first things first new boiler.

Always get something in writing.

For anything.

Not doing it is asking for trouble.

Right now one imagines that your brother is grateful that you are letting him have this house and all he has to do is pay bills and see to its upkeep. Human Beings are strange things - in time that could turn to something else... not gratitude, but intense jealousy of you and bitterness - why do you have all this and he has to depend upon you? Why does he have to pay the bills - he is looking after your asset for you. Why does he have to see to the upkeep of the house - he's paying the bills. In fact... why should he do anything for you - after all, you've never done anything for him!

People are strange and you need things in writing for when things turn strange.

Be careful out there.

Good advice from both Hippogriff and Heavykarma. Personally I would set up a contract and I would charge at least a "peppercorn" rent to set things on a legal basis, you never know what the future holds and whilst you may trust your brother implicitly, he may have a partner in the future that you don't. Friends, family and business is often not a good mix. Good luck.

To add to my input... it's all a very, very bad idea. But if you must do it - protect yourself as much as possible. Ensure you also perform all of your obligations as a Landlord if you believe that something that could even be remotely described as a Tenancy springs up. If your brother is grateful and reasonable then he will understand. There is no offence.

A 'normal tenancy doesn't have to be in writing but it's advisable.

A few questions that I'd have and that would need to be put in writting;

Who pays for maintanence and repair if he's not paying rent?
What's the sub letting situation permissable?
What's the situation regarding decorative and structural changes?
Who maintains the gardens?

Etc etc

Just read a thread on another forum,

Little or no rent" is a problem: If there is no rent, or where the annual rent is £1,000 or less in Greater London or £250 or less elsewhere, cannot be assured. So not an AST. So no s21 etc etc etc etc

see
http://england.shelter.org.uk/legal/...t_be_assured#2

hi everyone I have to say thanks for all your input, theres a few things I didn't even consider that u have mentioned, gosh theres lots of things to think about. I have been down the route with a tenant and issued section 21 etc, all went smoothly.so thought just put my brother in there. and nephew, so maybe charge a little rent but need a different agreement thought there was only a AST, is there any links that I can try to do an agreement online please.
please excuse my writing skills, wasn't one for school haha

As per my post an AST is the best agreement for all parties.  Not receiving rent = all normal obligations of a 'LL are still in place.

Your other option to an AST is a simple Licence Agreement (seperate for nephew and brother), this would avoid the need for the rent.
In this document would make it clear there is no intention to create a legal relationship but could set out things like who is respoonsible for what.
A Licence can be terminated by either party at will (similar to a Tenancy at Will) but if the licensee is paying the bills (council tax?) then you will still need a court order to evict them so it doesnt really help that much.

In my opinion the only reasons I can see to avoid an AST are:
1.  to avoid some legislation around AST's e.g Right to Rent Checks, serving an EPC, how to rent guide etc. which could trip up a s21 claim (although not a big issue I suppose)
2.  if your property is in a council licensing scheme area you wouldn't need to pay for a council licence
3.  the need to charge rent is avoided

But maybe these are not important to you and an AST might be easier (safer/more standard familiar to courts etc)

Best of luck