Almost two-thirds (64%) of landlords have rented to someone they know – but nearly one in five (18%) doing so informally.
This is according a small survey conducted by insurer Hiscox.
And the firm warns that while renting to friends or family may feel like a practical option during a time of change, these arrangements can carry added risks if not handled properly – particularly when clear agreements and boundaries aren’t in place.
Hiscox surveyed 164 UK landlords to explore attitudes towards renting to someone they know.
For those who opted for a formal arrangement, the most common provisions included:
- A written tenancy agreement (69%)
- Safety checks e.g. gas/electrical (54%)
- Deposit protection (46%)
- An inventory or condition report (41%)
- Specialist landlord insurance (40%)
A Hiscox spokesperson says: “These findings suggest that while many landlords are open to renting to someone they know, most recognise the importance of putting formal structures in place.
“Clear agreements, safety checks and deposit protection help set expectations early and reduce the risk of misunderstandings. Ultimately, renting to someone you know doesn’t remove the responsibilities of being a landlord – if anything, having the right processes in place becomes even more important.”
The firm issues six steps for landlords renting to someone they know:
- Use a written tenancy agreement – Even when renting to someone you trust, having a formal tenancy agreement can help prevent misunderstandings. A written contract clearly sets out responsibilities, rent terms, and rules, protecting both parties.
–
- Conduct safety checks – Landlords are legally required to complete certain safety checks before a tenancy begins, and should stay up to date with wider regulatory changes, including the Renters Rights Act.
–
- Right to rent checks – Renting to a friend or family member does not remove the requirement for landlords to carry out right-to-rent checks.2 Some landlords also complete referencing to ensure the necessary checks and documentation are in place.
–
- Protect the deposit – Where a tenancy requires it, landlords must place a tenant’s deposit in a government-approved scheme within the required timeframe. This typically applies to most private residential tenancies, including when renting to friends or family. Doing so helps protect both parties and ensures compliance with legal requirements.
–
- Carry out an inventory – Documenting the property’s condition before the tenant moves is important. A detailed inventory, including photos, can reduce disputes over damage or missing items at the end of the tenancy.
–
- Check your insurance – Check your landlord insurance adequately covers both your property and rental activity. Some insurers may outline additional conditions during a tenancy.
