BTL: Who Can Go On A Tenancy Agreement As Landlord?
Discussion
BTL property wholly owned by my mother.
Due to my mothers poor health, I manage the property on her behalf - finding tenants, maintenance etc - but have no financial stake in the property or derive any (financial) benefit from it.
About to enter into a new AST agreement with a tenant and was proposing to have my name on the tenancy agreement alongside my mothers.
The reasoning being if, worse case scenario, we have to issue a Section 8 or 21 notice to evict the tenant, then I can go to court instead of mum as it would be difficult for her due to her poor health.
However, couple of questions regarding this approach:
- HMRC would have me down as being a 'landlord' of this property but as I will not be deriving any financial benefit, believe I can readily explain, if asked, why this property doesn't form part of my Self Assessment return - all rent goes into my mothers bank account and is declared in her Self Assessment return. Sound OK?
- Would me being on the tenancy agreement even though I am not (technically) the landlord invalidate any Section 8 or 21 notices?
If so, any other approach I can take to legally represent my mother in this scenario?
Due to my mothers poor health, I manage the property on her behalf - finding tenants, maintenance etc - but have no financial stake in the property or derive any (financial) benefit from it.
About to enter into a new AST agreement with a tenant and was proposing to have my name on the tenancy agreement alongside my mothers.
The reasoning being if, worse case scenario, we have to issue a Section 8 or 21 notice to evict the tenant, then I can go to court instead of mum as it would be difficult for her due to her poor health.
However, couple of questions regarding this approach:
- HMRC would have me down as being a 'landlord' of this property but as I will not be deriving any financial benefit, believe I can readily explain, if asked, why this property doesn't form part of my Self Assessment return - all rent goes into my mothers bank account and is declared in her Self Assessment return. Sound OK?
- Would me being on the tenancy agreement even though I am not (technically) the landlord invalidate any Section 8 or 21 notices?
If so, any other approach I can take to legally represent my mother in this scenario?
SpeedBash said:
hidetheelephants said:
The Moose said:
The contract we use allows for a landlord (in fact more than one) and a property “manager“ (I forget the exact wording).
IIRC they are described as the agent.You put your mothers details down as landlord but you sign the agreement as their agent. Its perfectly usual to do it that way. As long as the money goes into her account HMRC aren't going to be interested in your involvement.
A letter from your mother to you giving consent for you to act on her behalf in relation to the tenancy should be sufficient for anyone who picks up on it. There is no advantage in putting your name down also.
I've looked after my mum's houses for years and never had any bother me signing agreement, I usually put (agent) in brackets after to avoid confusion. She uses the standard RLA (now NRLA) agreement.
Just a final note, your mother will still hold the legal responsibilities for your actions. For example If you fail to protect a deposit correctly, the liability is with your mother.
A letter from your mother to you giving consent for you to act on her behalf in relation to the tenancy should be sufficient for anyone who picks up on it. There is no advantage in putting your name down also.
I've looked after my mum's houses for years and never had any bother me signing agreement, I usually put (agent) in brackets after to avoid confusion. She uses the standard RLA (now NRLA) agreement.
Just a final note, your mother will still hold the legal responsibilities for your actions. For example If you fail to protect a deposit correctly, the liability is with your mother.
Edited by dazwalsh on Wednesday 9th September 08:26
Ive got one where the letting agent always puts himself as the landlord - annoying. Anyway it went to Section 8 and then court, where Shelter came along to make sure that the non paying tenant could stay and one of their legal points that they argued on was that i wasn't allowed to bring any case as I was not named on the tenancy agreement.
The judge accepted this point BUT said something along the lines of 'Mr Zedstar could claim, if he wanted to, that the name of the landlord is a trading style of himself, or he could serve notice at any point that the landlord named acts as his agent and he is the ultimate landlord',
We didn't get that far for it to matter as Shelter won, but for anyone else who looks after parents property etc its worth considering serving a notice if any of the names are ambiguous.
The judge accepted this point BUT said something along the lines of 'Mr Zedstar could claim, if he wanted to, that the name of the landlord is a trading style of himself, or he could serve notice at any point that the landlord named acts as his agent and he is the ultimate landlord',
We didn't get that far for it to matter as Shelter won, but for anyone else who looks after parents property etc its worth considering serving a notice if any of the names are ambiguous.
dazwalsh said:
You put your mothers details down as landlord but you sign the agreement as their agent. Its perfectly usual to do it that way. As long as the money goes into her account HMRC aren't going to be interested in your involvement.
A letter from your mother to you giving consent for you to act on her behalf in relation to the tenancy should be sufficient for anyone who picks up on it. There is no advantage in putting your name down also.
I've looked after my mum's houses for years and never had any bother me signing agreement, I usually put (agent) in brackets after to avoid confusion. She uses the standard RLA (now NRLA) agreement.
Just a final note, your mother will still hold the legal responsibilities for your actions. For example If you fail to protect a deposit correctly, the liability is with your mother.
So, my mother signs on the dotted line and I am OK to sign below that and put landlords agent in brackets?A letter from your mother to you giving consent for you to act on her behalf in relation to the tenancy should be sufficient for anyone who picks up on it. There is no advantage in putting your name down also.
I've looked after my mum's houses for years and never had any bother me signing agreement, I usually put (agent) in brackets after to avoid confusion. She uses the standard RLA (now NRLA) agreement.
Just a final note, your mother will still hold the legal responsibilities for your actions. For example If you fail to protect a deposit correctly, the liability is with your mother.
Edited by dazwalsh on Wednesday 9th September 08:26
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