Should You Rent Your Property to Friends and Family?
One of the most common questions we get asked by new landlords is what’s our opinion on them renting to friends and family? Read the full article here.
Should You Rent Your Property to Friends and Family?
One of the most common questions we get asked by new landlords is what’s our opinion on them renting to friends and family?
On the face of it, this seems an ideal scenario.
You know the person moving into your rental property.
You can avoid letting agency fees.
You don’t need to bother with any contracts or legal fussing about.
But those three reasons we stated above are EXACTLY why renting to people you know is often a bad idea.
Here’s why.
Being related to, or friends with, people you are entering a business deal with (which is essentially what you’re doing by renting them property) can be a shortcut to falling out with them. In our experience, many people find it far harder to hold people they are close to accountable for damages, late rental payments, or neighbourly issues. This causes stress and can leave landlords out of pocket.
You’ve found the tenant so that you can save a few quid on professional fees – that’s a cause for celebration. Or is it? A good letting agent will market your property so it achieves a premium rent. They’ll use their skill and experience to find you the right tenant, reference them correctly, and provide an inventory when they move in. These steps will protect you from trouble further down the line and could save you thousands of pounds, which is what a lousy tenancy can cost.
‘We sealed the deal with a handshake.’ This comment won’t usually stand up when things go sour and potentially end up in court. By using a letting agency, you’ll protect yourself from this risk. We will provide tenancy agreements for both parties to sign. This gives you rights as a landlord and gives them reassurance as tenants. It’s the smart, safe, and sensible thing to do.
If you’re still mulling over who to rent to, speak with us today, and we’ll be happy to share who we know is looking locally for a property like yours.
Thanks for reading.