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Caretakers Agreement.

By Charles. at 12:58, Fri May 4 2018, in Home Services Forum

Hello \'Daft\',
New member, joined today. Posting a piece of advice in regards to \'caretakers\' ie placing a person in a house, rent free (although that person/caretaker will pay the electricity bill, gas, TV as they are using that service). If the Executor(s) agree to keep the house \'lived in\' rather than have it empty and looking empty (for obvious security/safety reasons) but the Executor(s) are not willing to be classed (and considered by the taxman!) as a \'landlord\', then a \'Caretakers Agreement\' is one way to keep the house somewhat secure providing, of course, that the Executor(s) knows the calibre of the person being proposed as the Caretaker.
From experience, I would suggest the following - use a solicitor to draw-up a \'Caretakers Agreement\' (or download such a form/templet from the internet) but ensure that it is a time-limited Agreement ie for a period of six months/one year etc to be renewed by all parties involved. If all parties do not agree to renew the Agreement then all parties agree that the Caretaker will have one week/one month/whatever to vacate the house.

If the Caretaker is in place with a view to purchase the house after the rent free time period ie after six months or one year etc living there, rent free, but backs out of that verbal agreement in the last week, then the Executor(s) might, at the start, consider having a written clause inserted in the \'Caretakers Agreement\' (and, as stated, signed by all parties) that if that happens, then all parties agree that the Caretaker acknowledges that he/she owes that back rent to the Executor(s) - but that would mean that the Executor would have to, at the start of the process, register themselves as a landlord.
And, finally - from experience - try and not have a family member as the Caretaker, as it can lead to disagreements.

Just my thoughts on the subject.
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Caretakers Agreement.