My neighbour, who lives below me and who I have never met, emailed me saying she would like to rent my flat for three months. She said that her flat was being decorated/refurbished and she wants to move out but remain close to supervise the builders.
The flat is empty and I plan to sell it in August(ish). Any thoughts on risks? WHat to look out for? Where can I get a template for a rental agreement?
ANY TIPS ADVICE GRATEFULLY RECEIVED!
personally, I wouldn’t.
You would need a contract with refs etc , business as usual, and keep your fingers crossed she will leave after 3 months.
The answer may depend on whether her flat would be habitable during this period. Would the services be connected? would basic furniture still be there? Would there be a functioning toilet, bathroom and kitchen? If so, she might qualify as having a main home elsewhere and you could then let it outside the assured tenancy regime. You would need legal advice on this point from a specialist landlord and tenant solicitor. You would need to pay for this. Don’t consider it without this. If it would be an assured periodic tenancy, I would strongly recommend you say no as the legislation is fearsome and the fines for simple mistakes are eye-watering.
Either way, you may also require a local authority licence if your council has introduced selective licensing.
First is subletting/renting even allowed by your lease or by your mortgage?
Risks - same as any other tenancy - affordability, damage, not leaving; perhaps more difficult if there are any problems because she’s a neighbour (like doing business with friends or family - if works great if issues more difficult because more personal you may still have to deal with in future)
She will need to provide access for viewings -from offer to completion can easily take 3-4 months (more for a chain) so if you want to sell in August you need to start marketing now.
Maybe easier to sell if empty agents have keys and don’t have to agree access with your neighbour for viewings.
Upside risks - she has a definite timescale in mind which fits well with your sale plans. Having someone living in the place does reduce risks (if it’s going to be empty for 3 months you need to tell your insurance co).
You can do all the same things as any other tenant - meet them, reference checks for income employer credit history - and if they pass get rent Gurantee insurance as well as normal landlord insurance.
It could be a good deal for you but if you use a standard tenancy agreement then from 1 may the notice you serve a tenant to leave because you want to sell is 4 months (and if they don’t leave getting possession through the courts can take 6m - 1year+). So if you only want to let it for 3m you would be relying on your neighbour giving (2months) notice after a month. If you’ve never even met it’s a bit of a risk esp as you sound like you may be unfamiliar with all the legal Reqs to be a LL. It sounds like a lot of hassle and unnecessary risk for 3m rent.
Good luck