Let to council, or privately?
Discussion
Hi
I'm looking at options for renting out my property.
1) Let to council. On paper it all sounds good, with guaranteed rent etc, but the two issues I have is if the property really will be returned in a good state - will the council fulfil their end of the deals with repairs? And the rent is below market value usually. But it's hands off for me.
2) I go private, pay an agent to do all the management, and charge market value rent. With landlord insurance, any void periods would be paid for (although I'd have to put in a claim), which negates the benefit of option 1?
I don't see the big deal of automatic payments of rent with council letting when landlord insurance covers this?
Any thoughts appreciated!
I'm looking at options for renting out my property.
1) Let to council. On paper it all sounds good, with guaranteed rent etc, but the two issues I have is if the property really will be returned in a good state - will the council fulfil their end of the deals with repairs? And the rent is below market value usually. But it's hands off for me.
2) I go private, pay an agent to do all the management, and charge market value rent. With landlord insurance, any void periods would be paid for (although I'd have to put in a claim), which negates the benefit of option 1?
I don't see the big deal of automatic payments of rent with council letting when landlord insurance covers this?
Any thoughts appreciated!
when i watched "cant pay, well take it away" the other day. it showed a council tenant being kicked out for not paying rent. the rules changed at some point so whereby the council used to pay the landlord direct but now it goes to the tenants first, which then relies on them paying you themselves.....
i wish i could buy a property to rent out. If i did, Id never consider the council, just seem to be asking for aggro tenants
i wish i could buy a property to rent out. If i did, Id never consider the council, just seem to be asking for aggro tenants
If you are moving to buy to let then you need to take the emotional link you have with the property and treat it as a business. If you lease it to the council then make are your contract with them includes dilapidations at the end of the lease term. Have you approached the council and discussed with them what terms the property will be leased to them under? We don't have any properties rented out in this manner but a friend does and he has found it to be fine.
BTW landlord insurance might offer you some cover for non occupied periods but I wouldn't rely on it to cover you.
BTW landlord insurance might offer you some cover for non occupied periods but I wouldn't rely on it to cover you.
Edited by Roger645 on Saturday 21st May 08:54
My father lets a few flats in London through the Council and has been for probably 20 years. The upsides as you say you get a guaranteed rent but unlikely the level of rent will ever be reviewed. The lack of voids will make up though for the lack of reviews as the council will continue to pay even if it's not occupied.
Some of the occupants are better than others, one likes to cover the radiators in washing and keep the windows closed and then complain of damp.
I guess it depends on where the properties are and whether the council are going to pay a market rent.
Some of the occupants are better than others, one likes to cover the radiators in washing and keep the windows closed and then complain of damp.
I guess it depends on where the properties are and whether the council are going to pay a market rent.
Royce44 said:
when i watched "cant pay, well take it away" the other day. it showed a council tenant being kicked out for not paying rent. the rules changed at some point so whereby the council used to pay the landlord direct but now it goes to the tenants first, which then relies on them paying you themselves.....
s
Why on earth would they change the rules like that? That's asking for trouble surely!s
My mother in law's house was let to a housing association to pay for care home fees. In three years they turned the slightly shabby, out of date but clean house into a real pig sty. It stank, ceilings were coming down, cupboards off walls, interior doors removed and thrown in the untended garden, drains solid with fat, and numerous other sins. The housing association said "wear and tear" and paid a token reparation sum nowhere near the £15k it took to renovate the place for letting to ordinary tenants through an estate agent. AVOID!
I am a landlord. Equally I used to run a cities housing services. We used some 400 + private lets.
The properties and tnts do get managed. You've more come back against "us" when it goes wrong. Guaranteed rents and we ll sort bonds, rents, benefits. You or a private management company can't do that.
Don't tar all social tnts/benefits claimants with the same brush but arguably they'll be worse than working and paying tnts.
We probably had more problems with rubbish landlords failing to do repairs and so on. Dead easy though , if yr property isn't perfect then F off.
The properties and tnts do get managed. You've more come back against "us" when it goes wrong. Guaranteed rents and we ll sort bonds, rents, benefits. You or a private management company can't do that.
Don't tar all social tnts/benefits claimants with the same brush but arguably they'll be worse than working and paying tnts.
We probably had more problems with rubbish landlords failing to do repairs and so on. Dead easy though , if yr property isn't perfect then F off.
Andehh said:
Royce44 said:
when i watched "cant pay, well take it away" the other day. it showed a council tenant being kicked out for not paying rent. the rules changed at some point so whereby the council used to pay the landlord direct but now it goes to the tenants first, which then relies on them paying you themselves.....
s
Why on earth would they change the rules like that? That's asking for trouble surely!s
sunbeam alpine said:
I'm sure a lot of council tenants are fine, but some are absolute scum. Guess which sort I had?
Plus, as someone already said, you can't get the council to pay you direct (my area would only pay direct once they were at least 3 months in arrears).
Never again!
surely that depends on the scheme in question Plus, as someone already said, you can't get the council to pay you direct (my area would only pay direct once they were at least 3 months in arrears).
Never again!
If the council is taking the tenancy / lease and then subletting with necessary permissions ( the MoD , Businesses and Universities also do this ) vs a 'private' rent to a someone who is a HB recipient
if the council are sayign they guarantee rent s and will be taking o nthe repairs responsiblity it sounds like the first rather than the second .
Alex L said:
Andehh said:
Royce44 said:
when i watched "cant pay, well take it away" the other day. it showed a council tenant being kicked out for not paying rent. the rules changed at some point so whereby the council used to pay the landlord direct but now it goes to the tenants first, which then relies on them paying you themselves.....
s
Why on earth would they change the rules like that? That's asking for trouble surely!s
It's also a good way to deal with the idiots as they only do it once before the LA/RSL can wash their hands of them completely as gettign evicted for arrears is deemed to be intentional homelessness
motco said:
My mother in law's house was let to a housing association to pay for care home fees. In three years they turned the slightly shabby, out of date but clean house into a real pig sty. It stank, ceilings were coming down, cupboards off walls, interior doors removed and thrown in the untended garden, drains solid with fat, and numerous other sins. The housing association said "wear and tear" and paid a token reparation sum nowhere near the £15k it took to renovate the place for letting to ordinary tenants through an estate agent. AVOID!
This is why you need to have a formal dilapidations clause for the end of the lease. Roger645 said:
motco said:
My mother in law's house was let to a housing association to pay for care home fees. In three years they turned the slightly shabby, out of date but clean house into a real pig sty. It stank, ceilings were coming down, cupboards off walls, interior doors removed and thrown in the untended garden, drains solid with fat, and numerous other sins. The housing association said "wear and tear" and paid a token reparation sum nowhere near the £15k it took to renovate the place for letting to ordinary tenants through an estate agent. AVOID!
This is why you need to have a formal dilapidations clause for the end of the lease. 
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