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Question

Preventing Controlling and Recovering Rent Arrears (England)

Paying Rent to a Company

7 Apr 2017 | 1 comment

i am arranging a new tenancy in my name as owner and will register the deposit in this name but want the rent to be paid to my company. can you forsee any problems in this arrangement in future assuming eviction is needed

Answer

1 Comment

  1. guildy

    The definition of “landlord” under Housing Act 1988 is:

    “landlord” includes any person from time to time deriving title under the original landlord and also includes, in relation to a dwelling-house, any person other than a tenant who is, or but for the existence of an assured tenancy would be, entitled to possession of the dwelling-house;

    Where rents are paid to isn’t a factor in determining the landlord.

    We can’t just think of all legislation right now and their definitions but for example, in the Housing Act 2004 (which governs things like housing standards), there are further definitions such as “person in control” or “manager”. These are defined by who is receiving the rent from the occupiers. Therefore other things could be problematic (but it’s hard to come with examples without a scenario being provided).

    You could have the rent paid to you then you pay into the company as that would tidy things up.

    Alternatively, it might be possible for you to rent the property to the company at a low rent and then the company be both landlord and recipient of rents. That too could tidy it up.

    From a tax perspective, you should seek advice from your accountant. We don’t know how HMRC would view such an arrangement.

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