Would you let your property to Buckinghamshire Council?

ZZaffy

Moving to the west country and thinking of letting my property to the council, is this a good idea?  I understand there is a guaranteed income and free management. Sounds good to me.

eddddy

Is this a commercial lease - e.g. for 5 years? Bear in mind that they might use your property for housing 'difficult'/ anti-social tenants etc.

So, things to check:

• What happens if the council's tenants don't move out at the end the agreed period? Does it become your problem to evict them? (Some councils refuse to serve section 21 notices or carry out 'no blame evictions' on principle.)

• Is the amount they will pay for damage limited (e.g. to 2 months rent). Some people have reported that their properties get badly trashed (requiring new bathrooms, kitchens, decoration etc), but the council's contract caps compensation at 2 months rent.

• Whilst they manage the property, they probably expect you to pay for work that needs doing. e.g. If the boiler or cooker needs repairing. (Although the council might do their own minor repairs, like changing a washer on a tap.)

• If you have a mortgage, does your lender allow you to do a commercial lease?

• And you'll need to make sure you have an appropriate insurance for this type of arrangement.

• Are your neighbours personal friends? They might start hating you if you lease to the council, and the council put in difficult tenants. (And/or constantly phone you in the west country to complain. That happened to a LL I know, when the council's tenant started selling drugs. Dodgy characters were turning up at all hours, and there was a minor crime epidemic in the immediate area. )

tacpot12

If you hate your neighbours and the council are willing to guarantee an uncapped indemnity for damage to you property upto and including full rebuilding costs  (tenants have been known to burn houses down to the ground), go for it. 

Cakeguts

Wouldn't dream of doing this.

notrouble

It IS a 'commercial tenancy' as you your tenant will be the (non-resident) council, not to the resident occupants. Therefore not an AST.

Most landlords insurance requires an AST.

Most BTL/CTL mortgage contracts require an AST.

Have you read:

* New landlords (1):advice & information :see links in next post
* New landlords (2): Essential links for further information

Cash-Cows

There are different contracts available so check carefully what you get. I did something similar and worked out well. The council had to return the property to the same standard it was given to them in. Got guaranteed rent and no responsibilities for repairs. Major structural repairs not covered but all minor stuff done. In fact you don't need to do the place up probably it just needs to be safe but again depends on your contract. Councils are desperate for houses so no need to spend money on internal repairs and decoration. 

Property was returned cleaned and arguably in a better condition than given to them.