Renting to family

General Discussion

I would like to rent one of our houses to my niece. I know that, you should never rent to family or friends. So I am expecting that as a first reply.

I've let out a house to her before with no contract as I knew at the end of the day I would give her all the rent money back to put towards a deposit on a house of her own. She lived with her partner who I knew and trusted.

Things didn't go to plan and she is now with a new partner and desperately needs somewhere to live, She has a dog so has not been able to find a landlord that will let to her, she has been trying for months and sofa surfing.

I just happen to have a house come available that I would be willing to let her rent for about 50% of the normal rent. I was going to let her have it on the same basis as before, but I have never met her new bloke, so I want to use a NRLA tenancy agreement and charge her about 50% of the normal rent, just in case SHe ends up moving out and the boyfriend ends up staying behind.

During her stay at the house, I really do not care if she pays any rent for the rest of her life, but she is very trustworthy and proud, . It's my family and I can afford it. Her mum wants her to pay full rent, but I can not take it from her, I feel bad accepting anything that she will not be getting back.

Am I legally allowed to let it out at 50% normal rent value? I will use her rent payment to cover any repairs. I guess the rest will go on tax and maybe a slight profit if I am lucky.

If anyone has any thoughts of what I can do in this situation, it would be appreciated. It's not a good position to be in, but for my family they can live in my houses free of charge.

Any advice appreciated