Updating post from Reddit.
Hi all, will try and keep this brief. My mother passed last September and I have inherited the family home. It's in a bit of a state... New kitchen and bathroom required urgently and porch basically falling down. It's never been rented before. It's owned outright and freehold.
At the time of her death she had a 'friend' living with her and id like them to remain while I sort the repairs etc. tenant is happy with the property as had been there several years but the repairs need to be done as basically original 1970s fixtures.
Tenant is on pension credit so would be charging them a minimal amount.
My question is where do I start? Do I just get them to apply for housing benefit? What evidence will they need? Will the house need to be inspected? I know I need electrical and gas inspections, that will be new consumer unit and capping the fireplace as flue is not lined.
I'm concerned that in it's current state bathroom and kitchen look terrible and porch is basically out of bounds.. it's been inspected and not going to fall down immediately but doors/windows don't open easily as it's pulling away from house.
I don't immediately have funds to do all the work as a result the property is currently costing me and tenant living free ... I could just sell the place but don't want to make an older vulnerable person homeless when they are happy where they are.
Any income I can get from rent would go straight into repairs.
I have my own property too, with a mortgage and at some point need to upsize, hence not keen on a home improvement loan for rental property.
Any advice gratefully received....
I think you should give some serious thought as to whether this is really a good idea. It’s very nice of you to want to accommodate the “friend” but being a landlord is a business, not a charity, and I think you could easily end up with an elderly person, paying minimal rent and under occupying the space, staying in the property for many years. Doing the kind of work you say is required - new kitchen and bathroom etc - is difficult with tenants in situ, especially elderly people, contractors will be wary and getting it all done will be a great deal of hassle and expense. If I were in your position I would give the “friend” six months or so to find alternative accommodation and then, if you’re still keen on going into the BTL business you can either do up the property and rent it or sell it and buy something more suitable.
This is great advice.... Not sure if I can take it though... I'm a sentimental fool lol
Sentiments will be your downfall in this sector
You may also need to get some proper legal advice as I'm not sure where you stand at the moment.
Previously that person was a lodger. Now I think unless you're living there, the person would fall under a formal tenancy. If that's the case then you need to make sure you have a formal contract in place for 6 months. Plus you'll need to make sure you have a valid gas cert, EICR, epc amongst many other regulatory compliance that come as part of being a landlord.
Like the other person said... Unless you really want to be running a business you should look to sell. Also doing a reno whilst someone is living there is not recommended.
Thanks both really appreciate you taking the time.
A buy-to-let mortgage on this rental Property won't affect your ability to purchase your residential property —lenders consider that rent will cover the Mortgage.
Ideally, the Property would be Vacant when you renovate. Plus, once you're done, you'll want more rent than Someone on one Person benefits.
The Scary thing is that you are currently renting, so the Property needs to be up to today's standards.
I'd also be worried about whether the current occupier has inherited some rights.