Renting house to council
Discussion
Hi guys, im exploring all the avenues i can before i end up buying a house.
I work in london, but home is the lake district - and obviously you get a LOT more for your money up there (even in the nicer areas!).
Basically im entertaining the idea of buying "cheap" house(s) in the crappy areas of towns with a hope to let them out to the council for DSS use.
Wondering if anyone would have any input at all - as to how it works/how much you receive/any big problems you have had, and if you can employ an agency to deal with the council so basically you provide the capital - do nothing and deal with no crap!?
Ideas welcome! Sorry but i didnt know which area of the forums to put this post in, so if it needs moving - go ahead!!
TIA, guys.
Matt
I work in london, but home is the lake district - and obviously you get a LOT more for your money up there (even in the nicer areas!).
Basically im entertaining the idea of buying "cheap" house(s) in the crappy areas of towns with a hope to let them out to the council for DSS use.
Wondering if anyone would have any input at all - as to how it works/how much you receive/any big problems you have had, and if you can employ an agency to deal with the council so basically you provide the capital - do nothing and deal with no crap!?
Ideas welcome! Sorry but i didnt know which area of the forums to put this post in, so if it needs moving - go ahead!!
TIA, guys.
Matt
I'd been put of doing this after an aquantance had issues with renting to the council.
His council tenant didnt pay the rent for months, council did nothing, she used/dealt drugs and had repeated police call outs resulting in doors being smashed in (which he then had the responsibility of repairing) it took over 2 years to evict her due to being on the social, she smashed the place up befire leaving and the council didnt put it back to the initial standard despite their promises etc etc. he would never entertain doing it again and has since stuck to private letting.
His council tenant didnt pay the rent for months, council did nothing, she used/dealt drugs and had repeated police call outs resulting in doors being smashed in (which he then had the responsibility of repairing) it took over 2 years to evict her due to being on the social, she smashed the place up befire leaving and the council didnt put it back to the initial standard despite their promises etc etc. he would never entertain doing it again and has since stuck to private letting.
Check how the money will get to you. If it is from the council directly to you then you may be OK (horror stories about smashing the place up, as above, aside.)
However, a number of councils some time ago took to giving tenants the money for the rent, which they then paid to the landlord - it was supposed to 'empower' them. Guess how much of that rent actually got to the landlords ....
Bear in mind also that if you buy a nice-ish house in a half-decent area then you will pay a bit for the nice area. If you then let that house to council types, you may find that the nice-ness of the area takes a bit of a tumble, and the price of the house follows.
BUT, not all people who live in council-provided housing are trouble. The majority I am sure are nice people. And, yes, I say this in all seriousness.
Oli.
However, a number of councils some time ago took to giving tenants the money for the rent, which they then paid to the landlord - it was supposed to 'empower' them. Guess how much of that rent actually got to the landlords ....
Bear in mind also that if you buy a nice-ish house in a half-decent area then you will pay a bit for the nice area. If you then let that house to council types, you may find that the nice-ness of the area takes a bit of a tumble, and the price of the house follows.
BUT, not all people who live in council-provided housing are trouble. The majority I am sure are nice people. And, yes, I say this in all seriousness.
Oli.
I am sure yeah. I would be looking to buy a house in a relatively lowsy area - not by all means ghetto... but where the majority of housing is council owned/tennanted.
One of my friends does this, and he gets rents monthly, direct from the govt, but is responsible for damages - so doors kicked in, broken windows etc...
I just want to make money!
As i say im just exploring all avenues at the moment, perhaps it would be worthwhile looking @ student accommodation or perhaps a decent house (but then it would be only one) and renting out at the going rental, relying upon good/respectful tennants who wish to make it a home!
THE POSSIBILITIES!
One of my friends does this, and he gets rents monthly, direct from the govt, but is responsible for damages - so doors kicked in, broken windows etc...
I just want to make money!
As i say im just exploring all avenues at the moment, perhaps it would be worthwhile looking @ student accommodation or perhaps a decent house (but then it would be only one) and renting out at the going rental, relying upon good/respectful tennants who wish to make it a home!
THE POSSIBILITIES!
Soovy said:
Do. Not. Even. Think. About. It.
It could be fine http://www.pistonheads.com/gassing/topic.asp?h=0&a...Think long and hard before doing it, it can be a nightmare. Saying that the life of a LL in the private sector can be a rollercoaster too, I've had good and bad tenants. In fact the one of the best tenants we have are an Afganistan family who are in receipt of LHA, rent is paid fastidiously on time, the house is kept immaculately and the neighbours like them as they have made a really effort to integrate into the community.
Student accommodation might be the way to go, pick a relative cheap Uni town and provide something which is a bit above the expectations of general student accommodation and you could be onto a winner. A close friend of mine has 5 properties in Portsmouth/Southsea that are rented to students. Expect breakages and if you live a long distance from the properties get a good managing agent to look after the property, and make sure they are ARLA registered.
Student accommodation might be the way to go, pick a relative cheap Uni town and provide something which is a bit above the expectations of general student accommodation and you could be onto a winner. A close friend of mine has 5 properties in Portsmouth/Southsea that are rented to students. Expect breakages and if you live a long distance from the properties get a good managing agent to look after the property, and make sure they are ARLA registered.
londonagent said:
Think long and hard before doing it, it can be a nightmare. Saying that the life of a LL in the private sector can be a rollercoaster too, I've had good and bad tenants. In fact the one of the best tenants we have are an Afganistan family who are in receipt of LHA, rent is paid fastidiously on time, the house is kept immaculately and the neighbours like them as they have made a really effort to integrate into the community.
Student accommodation might be the way to go, pick a relative cheap Uni town and provide something which is a bit above the expectations of general student accommodation and you could be onto a winner. A close friend of mine has 5 properties in Portsmouth/Southsea that are rented to students. Expect breakages and if you live a long distance from the properties get a good managing agent to look after the property, and make sure they are ARLA registered.
Agree in part, but very much depends on the tenant/s, the area the property is in, and of course down to the person/landlord’s character, and whether the OP can give hands on experience with repairs/management etc.Student accommodation might be the way to go, pick a relative cheap Uni town and provide something which is a bit above the expectations of general student accommodation and you could be onto a winner. A close friend of mine has 5 properties in Portsmouth/Southsea that are rented to students. Expect breakages and if you live a long distance from the properties get a good managing agent to look after the property, and make sure they are ARLA registered.
One property I have, is divided into two flats, and let to two DSS benefit claimants. Sunday night phone call at 9 pm tenant locked themselves out, so drive over let the tenant in, no financial recompense received or can possibly be expected. Today get another phone call from the same tenant, washing machine leak from upstairs flat, fortunately upstairs’ tenant is in, so repair carried out.
Whilst carrying out repair, interior bedroom door shows signs of being used as a punch bag, with the female tenant’s boyfriend asking if it wasn’t possible for me to make the visit later on in the day.
Find out from your local council just how much they spend on council house repairs/ vandalism, and your next question of how much the rental arrears are with the council house tenants. Then the OP will understand why central government and local government want to pass council tenants on to the private renting sector.
Wings said:
Sunday night phone call at 9 pm tenant locked themselves out, so drive over let the tenant in.
LOL! You are far more amenable than me, I once had a tenant phone me drunk at 1am asking to be let in because they had lost their keys, advised them to go and sleep on a friends floor as I wasn't prepared to leave my nice cosy bed and do a 1 hours round trip because of their carelessness. I must admit the idea of student letting is appealing to me.
although if i do remember correctly, the house my friends and I rented whilst at uni had a spare room, which we saw fit to become a workshop, where a new VW GTi engine was stripped right down and built back up.....
needless to say a very oily floor etc, fortunately we had an awesome landlord as the house was in bad condition anyway charged us nothing and decorated in the summer upon the return, we were told "no more engines lads" LOL....
priceless - a friend of mine at a different uni had a landlord that fast become a good friend of theirs - going to the football witht hem and all sorts!!!
as you all say - it really is luck of the draw! I think with student housing you can have a bit more trust instilled in you, as you know what the house is for, they know what the house is for, and unless it is completely abused every year - you are laughing!!
Time to keep my eyes out then really!
BTW: Think you chaps have persuades me to steer well and truly clear of DSS rentals!
although if i do remember correctly, the house my friends and I rented whilst at uni had a spare room, which we saw fit to become a workshop, where a new VW GTi engine was stripped right down and built back up.....
needless to say a very oily floor etc, fortunately we had an awesome landlord as the house was in bad condition anyway charged us nothing and decorated in the summer upon the return, we were told "no more engines lads" LOL....
priceless - a friend of mine at a different uni had a landlord that fast become a good friend of theirs - going to the football witht hem and all sorts!!!
as you all say - it really is luck of the draw! I think with student housing you can have a bit more trust instilled in you, as you know what the house is for, they know what the house is for, and unless it is completely abused every year - you are laughing!!
Time to keep my eyes out then really!
BTW: Think you chaps have persuades me to steer well and truly clear of DSS rentals!
Ask Mr. Khateeb http://www.dailymail.co.uk/news/article-1309201/95...
MATTP77 said:
a friend of mine at a different uni had a landlord that fast become a good friend of theirs - going to the football witht hem and all sorts!!!
Two of my last three sets of tenants have got married, and I have been invited to both of the weddings! Getting on well with your tenants is important from the landlords' point of view too. Oli.
MATTP77 said:
I must admit the idea of student letting is appealing to me.
although if i do remember correctly, the house my friends and I rented whilst at uni had a spare room, which we saw fit to become a workshop, where a new VW GTi engine was stripped right down and built back up.....
needless to say a very oily floor etc, fortunately we had an awesome landlord as the house was in bad condition anyway charged us nothing and decorated in the summer upon the return, we were told "no more engines lads" LOL....
priceless - a friend of mine at a different uni had a landlord that fast become a good friend of theirs - going to the football witht hem and all sorts!!!
as you all say - it really is luck of the draw! I think with student housing you can have a bit more trust instilled in you, as you know what the house is for, they know what the house is for, and unless it is completely abused every year - you are laughing!!
Time to keep my eyes out then really!
BTW: Think you chaps have persuades me to steer well and truly clear of DSS rentals!
I have two HMO registered six bed properties, which over the past 15 years has been let to students. In those 15 years, the standard of students has dramatically dropped, with increases in students dropping out mid term, hence leaving the rental property with both rental arrears and debts. In the last two years, both properties have never been fully let, I have had an increase in rental arrears, vandalism, noise complaints from nearby neighbours and the police. although if i do remember correctly, the house my friends and I rented whilst at uni had a spare room, which we saw fit to become a workshop, where a new VW GTi engine was stripped right down and built back up.....
needless to say a very oily floor etc, fortunately we had an awesome landlord as the house was in bad condition anyway charged us nothing and decorated in the summer upon the return, we were told "no more engines lads" LOL....
priceless - a friend of mine at a different uni had a landlord that fast become a good friend of theirs - going to the football witht hem and all sorts!!!
as you all say - it really is luck of the draw! I think with student housing you can have a bit more trust instilled in you, as you know what the house is for, they know what the house is for, and unless it is completely abused every year - you are laughing!!
Time to keep my eyes out then really!
BTW: Think you chaps have persuades me to steer well and truly clear of DSS rentals!
With increasing legislation, future HMO’s now requiring local planning permission, each bedroom having on tap washing facilities, I have decided now is the time to remove myself from student lets, and so sale the above two properties.
In Bristol, both Bristol University and nearby UWE are financing new builds student lets, with also large investment companies going into student lets, with many of the same having 24/7 security, management staff on hand 24/7.
Of the other properties i own, the ones in the well do do areas, give me the lease trouble.
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