Renting to Family
I read the previous post re renting to ones daughter, whilst the daughter is claiming HB. You stated that sometimes the council may call this 'contrived' etc.
My first cousin, who I do not know personally, is in a council flat and is looking to move. The council will not move her just becuase she does not like the flat she is in (understandably). She has seen an empty property that I have, and she likes it and wants to move in. To be honest, it rents for about £700 pcm. However, she advisesd me that the council will pay up to £800 on HB, and so she has put £800 on her HB claim. I have had no word from the council as yet, about her new HB claim, yet she has just (last week) moved out of her council flat as the council advised her to hand her keys in to the rent office, then make a new claim from the new address.
As she has had to move out of her council flat, I have allowed her to store all her furniture in my property. She is living with her mum until the claim is sorted. Although I have not taken any money or handed keys over to her, she has signed an AST starting 9/2/09. I told her I would release the keys once the council starts paying the rent.
Does this sound okay? Have I acted correctly? If the council refuse her claim for some reason, where do I stand, as she has a valid signed AST but no keys, and all her furniture in my property?
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