Q: Person A has a house. Relative (person “B” B lives near the property, not A, 977,503,977,503 It is rented and has a tenant in it.
It need a gas check done, and it would really inherited a full electric control, IMO .
A wants to do everything by the book, B wants to take control and to save what he / she thinks that unnecessary spending. Even if they could agree on these checks, it is likely that there would be similar events in the Future attempts to control and B which makes it very difficult for a A.
What can do The ideal situation where both A and B are concerned would be for B to buy. B is not in a position to do so, and probably not in a position to do so in the near future. Even if something could be arranged where a B bought by paying ￡ x per month for many months, however, it is very likely that B can not make the payments religious each month.
If A to B was to ignore, and have all checks made, it is likely that 100% of the bill, 50% would not pay. And the same for all the other things that might arise in the future.
Where has A stand if a fire or a similar problem because there is no electricity monitor?
A would not want down the route of lawyers letters, etc.
Advice welcome . thanks.
PS – Sorry for the As and Bs. . it is very unlikely that this will be identified by the people concerned, but this is just a measure to ensure that even more.
If something happens to the tenant as a result of the electical installtion, you still have to prove due diligence, ie. you did everything you could to prevent it happening. That would mean checking the installation and appliances on a regular basis… You could still have criminally caused death or injury to the tenant even though a safety certificate is not required by law.
You should also be providing things like smoke alarms; nobody wants someone else's death on their conscience.
Moving to income – I take if that A&B have an agreement about sharing the rent? Essentially what a lawyer would look for is to see if a 'constructive trust' exists. (Trusts & Property is a complicated area of law and all I can refer you to is the LLB Learning Text on trusts or Property by Blackstones Publishing – these books are about £20 each & set these things out so even Jade Goody could understand)
If a trust, or a 'cooperation' between A & B exists, then maybe they could consider opening a joint bank account and putting the rent in there. Then the outgoings can be spent from that account.
With regard to 'saving money' – well if A & B are declaring the rent for tax purposes – then any income spent on gas checks etc can be set off against tax. If they are not declaring the income for whatever reason, then they really should get the gas (annual) and electricity (5yearly) done by qualified professionals anyway – and keep the receipts. Because 1) if the tenant or his guests gets gassed or electrocuted A & B will be 100% liable for their injury or death & could lose their own houses/ businesses unless they have adequte insurance (that will probably stipulate that A&B get these checks done by professionals!) – or 2) the tax man will catch up with A & B and in that case its best to at least ensure they have some receipts that they can pass to a decent accountant to minimise the penalty.(Accountant costs can also be set off against tax.)
Family stuff can get really messy, but it is truly worth A & B trying to cooperate and get a joint bank account open. A & B must not skimp on Health and Safety matters. They must agree a timetable for the checks and inspections etc and stick to it. They must Work together – as if they fall out – it will be handed to solicitors – and then all that will be left of the wonderful inheritance is a few pounds after the lawyers have walked away with all the money. Seen it happen.
Good luck A&B!