Editor's note: This brief was summarised by The Property AI Team from a report by Landlord Today. Read the original article for full details.
Landlords Warned Over Risks of Renting to Friends or Family
A recent survey by insurer Hiscox has found that almost two-thirds (64%) of landlords have rented to someone they know, with nearly one in five (18%) doing so informally. Hiscox has issued a warning that such arrangements can carry added risks if not managed properly.
The survey, described as small by Landlord Today, highlights that renting to friends or family may seem like a practical solution, especially during times of change. However, Hiscox cautions that these informal agreements can lead to problems, particularly when clear agreements and boundaries are not established.
For UK letting agents and inventory clerks, the findings underline the importance of ensuring that all tenancies, even those involving friends or family, are formalised with proper documentation and clear terms. This can help prevent misunderstandings and protect both landlords and tenants.
Source: Landlord Today