Feedback from Landlords who have rented or are renting to the Council please

TempUsername03052020

Hi All,

I have a property which I am in the process of purchasing which I am looking to rent out once I have fixed it up.

I have seen councils offer 3-5 years of guaranteed rental income which almost seems too good to be true.

I am just wondering what are peoples experience with renting to Councils:

- % of market rental rate should i expect?

- Was the Property looked after?

- Anything I should look out for?

I'm just looking for all types of advice, experiences etc just to determine whether this is a good option to go for?

Thank You

Socajam

I think you should do a search on your council's website and see all the things that they will need done with the property before they will take on your rental.
Personally, it looks like easy money, but I would not rent with the council -
I am not sure if you will be given a choice of tenant and if you will have a choice to refuse
How easy is eviction if the tenant is a nightmare in not keeping up the property or to your neigbours?
These are some of the things you will need to consider.

davidmcn

The lease won't be a "standard" residential tenancy, so be aware of that if you have a mortgage which requires you to enter only into ASTs or equivalent.

HampshireH

If you do it you literally hand the property over in most cases.

No choice in tenant. No access for inspections.  Depends entirely on the agreement though of course.

However you will need to pay for property maintenance (excluding wear and tear inside like decorating and tenant damage)

Any structural issues, upgrades, damp, fencing etc would remain your responsibility normally and the council or LA would approach you if/when it crops up.

Durban

I have 2 BTL's and would never rent to the council.  Even if I wanted to , which I wouldn't , my mortgage and insurance doesn't allow me to 

Comms69

davidmcn said:

The lease won't be a "standard" residential tenancy, so be aware of that if you have a mortgage which requires you to enter only into ASTs or equivalent.

The lease may be a standard one - council can act as guarantors, rather than tenants. It's not quite the same as the commerical guaranteed rental schemes

dimbo61

You need to do your own research and maybe have a chat to the housing office of your local council.
They have a housing benefit rate for say 2/3/4 bed houses so say £520 a month is the max rent they will pay for a 2 bed house in Manchester.
The house needs to be in a good state of repair and Gas/Electric certificates need to be up to date.
Mains wired smoke alarms, fire doors etc

greatcrested

There are different ways this is done.

* the council nominate a tenant (you may but probably don't get a choice) and you rent direct to the tenant. Standard AST. Council may or may not guarantee the rent. Council may or may not pay the deposit for the tenant.

* you rent to the council. So not an AST. The council then sublet to their tenant(s). You have no choice, no rights, no control. Many mortgage lenders (BTL/CTL) and insurance companies (LL's insurance) don't allow this.

But if you are lookng at "3-5 years of guaranteed rental income" that's likely the latter in some form. Oh - and rent will be (way ?) below market rent.

Post 7: New landlords (1):advice & information :see links in next post

Post 8: New landlords (2): Essential links for further information

Post 9: Letting agents: how should a landlord select or sack?

TempUsername03052020

Just to add a bit more detail they offer 2 ways to let out:

Option 1) Private Sector Leasing

We can let and manage your properties on a three, five or seven year lease.

Why let with us? We offer:

No let no fee

We have the largest database of potential tenants in Wolverhampton and we will cover all advertising costs - no charge to you.

Guaranteed rent over the period of the lease

We guaranteee rent from the date the first tenant moves in until the end of the lease, regardless of any period where the property is empty.

A range of management and lettings options

We’ve been in the business long enough to know that no two landlords are the same so we've tailored our services to cater for as many needs as possible - leaving you with peace of mind.

With low cost management fees, you can be safe in the knowledge that the largest property management company in the city is handling your investment in a professional and efficient manner.

Option 2) The Landlord Incentive Scheme will:

• Find you a tenant in housing need
• Aim to let your property within one week 
• Indemnify you against damage to the property and/or rent arrears up to the agreed limit
• Offer housing support to your tenant for up to six weeks and help with their benefit claims
• A direct contact number for our housing support team so that you or your tenant can get in touch if you have any concerns
• Direct contact details for the Council's landlord liaison officers, who will answer any landlord query and can even help with some legal advice

Under special circumstances we may also:

• Pay the first month's rent
• Give you a one-off bonus for renewing the tenancy after 12 months
• Pay your tenant find fee, it you are using a lettings agent

*These benefits are subject to certain conditions. Contact us for more information. 

What we need from you:

• You must be rated 3 star or above on the Rent with Confidence Scheme (we can arrange this for you)
• EPC certificate
• Gas certificate
• "How to rent” document
• Inventory
• Tenancy agreement

Thos are two options that they are offering. I'm not sure if either are good or if i should just privately let out?