Rental Property - Someone Want's To Pay Me Good Money Sound Dodgy!

mrsmith68

dimbo61 said:

You will be handing over your Rental property to a complete stranger.
Your still legally responsible for everything about the house but have No control who the Rent To Rent cowboy puts into the house.
They can rent out each room to a couple and turn it into a HMO without a licence or following the Rules required ( fire safety) room size, EPC EICR GSC pat testing etc.
Your don't see a Penney of the rent and can take years and thousands of pounds trying to recover your home.
You need to pass any contract they offer you to a good solicitor and local council housing services.
Don't do it.
We get letters every single week from Cowboys offering to manage our HMO because our details are on the local council HMO website 😞

I don't know much but he has called few times in the past few days to ask if we have come to a decision told him need to discuss with the missus before doing anything, the bit which don't make sense to me is that he mentioned the local council would provide tenants surely the local council vet tenants?

 what is a HMO? 

sorry new to all this hence why I signed up, to get some advice we got the previous tenants from an agent.

mrsmith68

RAS said:

Listen to dimbo61.

Firstly, any arrangement to rent for exceeding 3 years should only be taken by a very experienced LL who understands the pitfalls, and I doubt one who did would agree to it.

Secondly, there are numerous threads on here about naive LLs who 

a) accept a guaranteed income from an EA, who then acts as LL instead, leaving the owner unable to evict tenants who cause serious damage etc or
b) allow the local Council to take over the property and sub-let.

Your guy will agree to pay you £1,000 but you may not be able to enforce that. He will then let each of 4 bedrooms plus the reception rooms (possibly divided) at a around the Local Housing Allowance, so about double what he's offering you. And your property will be returned wrecked, eventually.

We clearly don't know much, is this something new or has it been going on for sometime? the property currently is in tip top shape previous owners (lovely little family replaced 2 bedroom carpets that they had damaged before leaving)

EA? honestly I'm happy I found this form as I was really considering it, was going to try  persuade the missus as well something she was against in the first place, the extra money would have been great but not worth headache or trouble esp if the property is wrecked at the end! If possible can you send some links to previous threads? 

Ras & Dimbo61 cheers for the help so far appreciate it!

daveyjp

The Council will have people who need housing (they may well be being moved from hotels and b&bs somewhere else in the Country where there is a lack of available property).

Councils work with landlords to provide housing for them.  The landlord payments are almost guaranteed as it will be covered by housing benefit.

My advice is if you want to get into this market do it yourself.

RAS

No, the local council won't vet the tenants. 

This might be what your pushy guy wants to do Supported Accommodation: HMOs - Hansard - UK Parliament .

The big advantage for the LL in these situations is that exempt accommodation rentals massively excceds the LHA and the level of support is frequently minimal Inside Housing - Insight - The story explained: what is exempt accommodation?

NameUnavailable

mrsmith68 said:

Hi All,

.......didn’t want to pay an estate agent any fees so I put up a piece of paper with the usual info got a call a few days later from an interested party.

Maybe you should rethink your strategy?

quotememiserable

I'm confused why you think £1k per month is too much for a 4 bed house. Sounds light to me, where is it?

mrsmith68

daveyjp said:

The Council will have people who need housing (they may well be being moved from hotels and b&bs somewhere else in the Country where there is a lack of available property).

Councils work with landlords to provide housing for them.  The landlord payments are almost guaranteed as it will be covered by housing benefit.

My advice is if you want to get into this market do it yourself.

sound's interesting, but can you elaborate on the do it yourself bit? New to all this, would the housing benefit be more then what we was currently getting £650? 

RAS

If it's split into rooms and used for "exempt" accommodation, maybe £200 per week per person. So perhaps £5-6K per month?

mrsmith68

RAS said:

No, the local council won't vet the tenants. 

This might be what your pushy guy wants to do 

The big advantage for the LL in these situations is that exempt accommodation rentals massively excceds the LHA and the level of support is frequently minimal

oh so the tenants could literally be anyone, i will put the above to him next time he calls won't be too long before he does, we currently own 2 rental properties, one is let out and this one is currently free, how would one get into exempt housing?

got this from google  "term used in the Housing Benefit Regulations to describe supported accommodation provided by non-profit making organisations"

the above wouldn't work as we would be making profit from it right?

Instead of renting it out to someone else for £1k a month I would be interested in doing something myself that way I could make sure the property is not heavily trashed & look after it as I own it!

Thanks for all the help so far appreciate it 

mrsmith68

NameUnavailable said:

mrsmith68 said:

Hi All,

.......didn’t want to pay an estate agent any fees so I put up a piece of paper with the usual info got a call a few days later from an interested party.

Maybe you should rethink your strategy?

an agent wanted a upfront fee + percentage % of the rental income to manage it/ look after it , the way the current climate is would just about making the monthly mortgage payments with all his fee's etc