Before renting out property to friends and family, you should check:
Use a written tenancy agreement:
Since you would be renting out to family members or friends, you may be tempted to verbally agree to accept them as tenants, but you should avoid this and use a written tenancy agreement instead.
Tenant referencing with friends and family is likely to be unnecessary. Most property owners who choose to rent out to friends and family do not tend to go through the referencing process (do not check credit rating). However, if you would like to obtain Rent Guarantor Insurance (which protects you against any loss of rent in case your tenant falls into arrears), you would be required to reference your tenant.
Your legal obligations
You should always be aware of your legal obligations regardless of who you are renting your property out to.
The information in this post is valid to the best of our knowledge on the date of posting. It is advised that you seek independent advice based on your individual circumstances.
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