Letting through Council (Central Housing Group)

sarah_id1

Anyone has any experience letting their (london) property through council agency Central Housing Group.

Is it safe in terms of

Condition of the house after 3 to 5 years?
Do I as a landlord have a choice of tenants?
Is it really garanteed rent? and how low (%) compare to private market

Pixie5740

Are you not able to enter into a contract with a council directly. Cut out the middle man.

These rent guarantee schemes generally involve entering into a commercial agreement, so not an AST, with the middle man and you don't get a say in the sub tenants they select.

jayship

Council usually rent properties through their nominated agents where the rent is guaranteed but you have to sign a contract for 3-5 years. It may not be possible to get out of a contract until it ends. (Almost impossible)

The rent is much lower than what you could achieve through open market in London. Hence most landlords are unwilling to let to the local authority. You have no control on selecting the tenant. Rents are based according to the post code.

Some councils in London have started a private rental scheme where the landlord agrees a contract directly with the tenant nominated by the council and the housing benefit is paid directly to you. Any top up over the threshold is paid by the tenant. However the council will carry out Affordability Test to determine that the tenant is able to afford the top up.

There is a risk that the tenant may default on the top up but the local housing department will get involved in case of arrears and try to resolve the issue. Not sure what would happen if this does not work and you probably end up with the eviction process.

G_M

* no you can't choose the tenants
* no you have no control once you've signed
* no you can't evict a tenant, however much damage they do
* no you won't get a market rent - far less
* no you won't have an AST- it will be a commercial tenancy to the council (or their nominated agency)
* no, your mortgage lender (probably) won't permit this - most insist on an AST
* no your insurer (probobly) won't cover you - most landlords insurance policies are for ASTs

But yes, you'll get a guaranteed rent for the period stipulated.

sarah_id1

Yes I have small loan left. I am hoping my Bank will allow me to let to the council as I would be leaving the country for more than 3 years. Not sure whats the best option for me.