Renting house to a Housing Association

Sue_S

I've been investigating renting my BTL house to a Housing Association but it seems too good to be true. They will take the house for 3 years and pay a higher than market rent (£1500 per month opposed to £1400 pm on the open market).

I can't see the catch but surely there must be one? Guaranteed rent for 3 years, a guarantee to hand the property back in the same condition it was signed over to them and in addition paying me more than I would get through a letting agent. Plus no extra fees for marketing, etc...

Too good to be true? Any advice appreciated.

Pyewacket338

Sounds great! I'd be interested if this was in my area.

Wonder who's responsible for repairs and maintenance!

Sue_S

The HA is responsible for basic repairs and maintenance. The LL has to take out cover for the central heating plus contents+buildings insurance. The LL also has to provide a certain amount of furniture which is not repaired if damaged - I think the idea is to throw it all away at the end of the 3 years and start afresh with new stuff.

Sue_S

Any more comments/advice?

silvercar

A catch is that you are committed to letting it for 3 years, so if your circumstances change you won't be able to sell it. You need to make sure you won't need to remortgage in that time as you won't get access for a valuation.

bekkki1

Could I ask where you found out if the housing association rents private properties

Thanks

socrates

In my experience HA's provide you with a list as long as 2 arms of things they want done before they will move people in - then there is a void until they allocate the property - all in all can be 2 months.

barnaby-bear

silvercar wrote: »

A catch is that you are committed to letting it for 3 years, so if your circumstances change you won't be able to sell it. You need to make sure you won't need to remortgage in that time as you won't get access for a valuation.

and for this reason many mortgage companies don't allow it - so most suitable for LLs who own outright....

Sue_S

bekkki1 wrote: »

Could I ask where you found out if the housing association rents private properties

Thanks

I phoned the local authority. They also rent private housing but what they were offering was too low. They gave me the numbers of some housing associations to contact but I also got a list of local HAs from the web and checked their websites.

Sue_S

socrates wrote: »

In my experience HA's provide you with a list as long as 2 arms of things they want done before they will move people in - then there is a void until they allocate the property - all in all can be 2 months.

Yes, I've got the list and you're absolutely right, it is long. I hadn't realised about the void until the allocate the property - I'll check that out. Thanks.

socrates

Sue_S wrote: »

Yes, I've got the list and you're absolutely right, it is long. I hadn't realised about the void until the allocate the property - I'll check that out. Thanks.

I am surprised that the HA are paying more than market rent - have you checked LHA rates they seem to stick pretty close to them and as they are giving you 3 years guaranteed I would have imagined you would have been getting less