Renting to Council - Any Thoughts?

MichNB

Hi there,
I'm a first time poster looking for some advice!
My parents currently have a house up for rent which they really need to get tenants into quite urgently. They have had very little interest until this afternoon when they were approached by Bedfordshire County Council asking whether they could move a family of Traveler's in. They have offered my parents 6 months rent upfront, 2 months deposit and guaranteed the return of the house in the same, if not better, condition. They want the tenants to move in ASAP, all of which suits my parents down to the ground and they are thinking of just going for it. I, however, am more cautious and am wondering whether anyone has had any experiences of this - good or bad?

There is also a small paddock beside the house which is not included in the rental contract, I am worried about this being used and possibly abused (I don't want to sound like I'm stereotyping here, I have been worried about this regardless, any way!) Does anyone have any thoughts on what would be the best thing to do with it? Padlock the gate and hope for the best? If we leave it unlocked and it does get ruined, will the council agree to return it to it's previous state, or will they try and worm out of it as it's not included in the contract? Sorry if this seems a bit long-winded and rambling, just after any sort of advice and previous experiences with this so my parents don't get blind-sided by anything unexpected.
Thanks so much in advance!

princeofpounds

here is also a small paddock beside the house which is not included in the rental contract

That sentence makes me worry a lot.

You also need to be careful about signing tenancies through corporate entities like councils or letting agents rather than direct with tenants. They have different rules, closer to commercial tenancies, which can seriously catch you out if you do not understand them. (If you do understand, it's ok).

Personally, I would much rather drop my rental price to attract a tenants you like an can control. Even 20% off is cheap compared to just one nightmare tenant in 5.

knightstyle

Our neighbour has had the house he inherited from his parents done up and let by the local council. Seems to be working out fine but there is no paddock.

eddddy

Read the council's lease very carefully - look for loopholes.

Some specific examples...

1) Is the councils liability for repairs to damage unlimited? e.g. if the tenants cause £20k (or more) will the council pay the full amount?

2) Presumably the lease is for a fixed period. What happens if the council's tenants refuse to move out at the end of that period? (e.g. Will they simply hand back the property, and leave your parents to do the eviction.)

3) Similarly, what if the council leave it empty, squatters move in, and are still there at the end of the lease.


(And are your parents friends with their neighbours?

I know an LL who leased to the council, and the council's tenants turned out to be drug dealers. 'Undesirables' started congregating around the property, petty crime rocketed.

The outraged neighbours tracked down the LL and started giving him major grief.)

G_M

Will you be creating a commercial tenancy with the council as your tenant (and the 'travellers' as sub-tenants)?

Or will you be creating an Assured Shorthold tenancy (AST) with the 'travellers', with the council paying all/part of the rent and acting as Guarantors?

Very few people here know much about commercial tenanies, other than the horror stories that ocassionally surface here.

Tigsteroonie

princeofpounds wrote: »

Personally, I would much rather drop my rental price to attract a tenants you like an can control. Even 20% off is cheap compared to just one nightmare tenant in 5.

This ^^^^. I wouldn't touch the arrangement with a bargepole. And in case the council have already mentioned the possibility to the prospective tenants, I'd secure the paddock now.

Cheeky_Monkey

Agree 100% with Tigsteroonie

[Deleted User]

I wouldn't agree unless i was able to check out the prospective tenants. The last thing your parents need is the hassle of tenants with ASBO offences or anti social behaviour. I'm not saying these tenants will have, just that I'd want to check. I'd need a bit of history and do credit checks, social media checks etc.

Guest101

deannatrois wrote: »

I wouldn't agree unless i was able to check out the prospective tenants. The last thing your parents need is the hassle of tenants with ASBO offences or anti social behaviour. I'm not saying these tenants will have, just that I'd want to check. I'd need a bit of history and do credit checks, social media checks etc.

What do you think ASBO stands for?

silvercar

True travelers will keep your property immaculately clean. If anyone watched the Ch4 series on Gypsy weddings, they always showed the inside of the caravans spotless.

Your risks are the amount of people they may have living in the property, the use and abuse of the paddock and the animals they may keep in the garden. There is also the interaction from the locals. You are probably as much at risk from graffiti from the locals daubed on your house as from the behaviour of the travelers.

gazter

run away, very fast, unless as said the council doesnt have any loopholes in returning the house back to how you found it. Dont underestimate the scale in which a tenant who has nothing to lose can cause damage.