Subletting to an Agencey - Subletting Insurance

Funky_Fred_1

Hi everyone 🙏🏾 I am a Newbie to MSE Forum

I rent a property and am thinking of Subletting to an agency ( this would guarantee the rent )

I have rang a few insurance company’s but they don’t do subletting insurance.

Do I need a special subletting insurance ?

Any help would be appreciated.

Edddy
Thank you for the reply below

Just to double check, when you say you "rent a property", I assume you mean you are the tenant (i.e. you don't mean that you are a freeholder or leaseholder and you "rent out a property".)

If so, does your tenancy agreement allow you to do commercial subletting? It would be commercial subletting because you are subletting to an agency.

Is the property a house or a flat?

What type of insurance do you mean? If you mean buildings insurance, your landlord (or the freeholder, if it's a flat) would normally have arranged that - assuming that your tenancy agreement allows you to do commercial subletting.

user1977

You've copied and pasted @eddddy's questions but not answered any of them…

Funky_Fred_1

I am the landlord who owns the property a house (freehold)

I am thinking of renting to an agency, who would sublet to the council

As the landlord of the property I need to get a Buildings - Subletting Insurance, I need advice on any insurance company’s that provide Subletting Insurance.

_Penny_Dreadful

https://forums.moneysavingexpert.com/discussion/comment/81875224#Comment_81875224

Not that I recommend rent to rent at all, why use an agent as the middle man? Can’t you have a contract with the council yourself?

For insurance queries you might be better posting on the Insurance and Life Assurance board.

Brie

https://forums.moneysavingexpert.com/discussion/comment/81875265#Comment_81875265

My thought as well (not that I rent property at all). The local council advertises that it will guarantee the rent so that would achieve that part of the issue. I'd suggest you talk to them and see if they do all the rest as well - ensure the property is properly maintained, with all the safety bits and paperwork etc.

Funky_Fred_1

The property in within the Nottingham City Council area and so have to have a licence to rent a property, plus other documents.

The agent has these documents and has time to be there when the council comes to check the property or tenant has an issue.

At the moment I work and have a child who is consistently ill, so am happy for the agent to do the donkey work- so to speak.

My question is/was if anyone knew how I get a Sublet Insurance.

As _Penny_Dreadful has suggested I will try posting on the Insurance and Life Assurance board.

I would like to thank everyone for posting their helpful comments and hopefully I will be able to help someone on the forum.

Thank You 🙏🏾

mlz1413

So will the agency will find a tenant and charge you a % of the rent?

And will the contract will be in your name and Notts CC? To allow Notts CC to house whoever they want during the contracted period, which you won't know anything about because you are letting to the Council.

So the council should offer certain assurance and possibly insurance for the state of thr house.

I'd put that question back to agency, they must deal with this all the time if they house tenants for a council.

Funky_Fred_1

This has been discussed with the agency, and will be in the contract that the property will be returned in a good state and any damage will be repaired.

eddddy

Funky_Fred_1 said:

This has been discussed with the agency, and will be in the contract that the property will be returned in a good state and any damage will be repaired.

Check the contract to see exactly what it says - don't rely on what the agent says.

Councils often put a limit on the damage they will pay for. For example, the limit might be 2 months rent. (And/or there might be other exclusions.)

I recall one house owner whose house was completely trashed by the council's tenants, and 2 months rent didn't come close to covering the repair costs.

Also, the council might do minor repairs - but if there's anything major (like replacing a broken down boiler), you'll probably have to pay…

… and will you be allowed to inspect the boiler to check that it's really unrepairable? And will you be allowed to choose your own contractor to replace the boiler, or will the council use their own contractor and charge you?

And will you be able to establish if the boiler broke down through fair wear and tear, or whether the council's tenant misused it? And if the you believe the tenant misused it, will you have a way of claiming the cost back from anyone?

Plus these agreements typically last 3 years or 5 years. But what happens if the council's tenant is still living in the house in 3 years or 5 year time? Most councils will refuse to serve section 21 notices on principle - and/or maybe section 21 notices might no longer exist. So will you have to take over as landlord of the council's tenant?

monkey-fingers

https://forums.moneysavingexpert.com/discussion/6654411/subletting-to-an-agencey-subletting-insurance

It's a shame she left because I can't find her other threads. This particular lady had (IIRC) leased one out to Mears (who are effectively a housing association) and another directly to the Council.

Getting possession back of the flats was an absolute nightmare that took (again IIRC) years.
https://forums.moneysavingexpert.com/discussion/6416361/lease-has-ended-but-company-not-leaving/p1