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  • FIRST POST
    • mn2203
    • By mn2203 11th Apr 18, 7:57 AM
    • 41Posts
    • 3Thanks
    mn2203
    Considering renting my 1 bed flat to local council
    • #1
    • 11th Apr 18, 7:57 AM
    Considering renting my 1 bed flat to local council 11th Apr 18 at 7:57 AM
    Hi

    I am about to rent out my 1 bed flat and considering renting this out to the council rather than a private tenant. I don't want to use an agency as they charge ridiculous fees, I have a friend who could help me through being a landlord - has shared tenancy agreement examples etc, but would like someone to move in sooner rather than later and am busy with work/ moving myself so haven't the time to advertise and interview tenants etc.

    The council would like to move in a single mum, early 20s with a young child - there is a park and school nearby, close to town so I think this young lady would be happy and so feel this could be a long term thing - i.e. not someone new moving in every few months (I'm aware this could still happen).

    Has anyone else done this? And advice welcome.

    Thanks
Page 1
    • Pixie5740
    • By Pixie5740 11th Apr 18, 8:05 AM
    • 11,928 Posts
    • 16,795 Thanks
    Pixie5740
    • #2
    • 11th Apr 18, 8:05 AM
    • #2
    • 11th Apr 18, 8:05 AM
    Hi

    I am about to rent out my 1 bed flat and considering renting this out to the council rather than a private tenant. I don't want to use an agency as they charge ridiculous fees, I have a friend who could help me through being a landlord - has shared tenancy agreement examples etc, but would like someone to move in sooner rather than later and am busy with work/ moving myself so haven't the time to advertise and interview tenants etc.

    The council would like to move in a single mum, early 20s with a young child - there is a park and school nearby, close to town so I think this young lady would be happy and so feel this could be a long term thing - i.e. not someone new moving in every few months (I'm aware this could still happen).

    Has anyone else done this? And advice welcome.

    Thanks
    Originally posted by mn2203
    Is the property mortgaged? If so has your lender granted consent to let and importantly has it granted consent to let for this type of let which I presume is not a standard AST?

    Has the freeholder also granted consent to let?
    • mn2203
    • By mn2203 11th Apr 18, 8:22 AM
    • 41 Posts
    • 3 Thanks
    mn2203
    • #3
    • 11th Apr 18, 8:22 AM
    • #3
    • 11th Apr 18, 8:22 AM
    Hi

    Yes the mortgage company and freeholder have agreed to this.

    Thanks
    • mugatool
    • By mugatool 11th Apr 18, 8:57 AM
    • 12 Posts
    • 6 Thanks
    mugatool
    • #4
    • 11th Apr 18, 8:57 AM
    • #4
    • 11th Apr 18, 8:57 AM
    What other information do you have on the tenant. Is she on housing benefit? Wash she in arrears and the council are dumping her on a private landlord as they have no responsibility to house her?

    I've had both great council tenants and I've had council tenants who have left me out of pocket and trashed my house. And you could get the same with private tenants as well.
    • tom9980
    • By tom9980 11th Apr 18, 9:07 AM
    • 1,259 Posts
    • 3,792 Thanks
    tom9980
    • #5
    • 11th Apr 18, 9:07 AM
    • #5
    • 11th Apr 18, 9:07 AM
    You show no real signs to me you want to be a landlord with all the responsibility that requires, you dont want to use an agent and have no desire to to even interview your potential tenants. It seems to me you may not be cut out for this if you cannot even do the basics yourself.

    Consider selling or find time to be a good decent professional landlord.
    “In order to change, we must be sick and tired of being sick and tired.”
    • silvercar
    • By silvercar 11th Apr 18, 9:12 AM
    • 37,100 Posts
    • 156,292 Thanks
    silvercar
    • #6
    • 11th Apr 18, 9:12 AM
    • #6
    • 11th Apr 18, 9:12 AM
    Are they paying you the market rent? Is it guaranteed? Future rent increases?
    What happens when the lady is no longer eligible for council help with rent, either because she starts work or because she meets a working partner? Will the council still pay the rent/ agree to house her?
    What happens if you want the property back?

    Risks on every tenant, I wouldn't rule it out. I have a similar situation, though the tenant found the property directly. The upsides are that the tenant wants to stay long term (no voids) and is now unlikely to find a new rental, council pays the rent on time. Tenant does minor repairs and redecorates, generally looks after the place.
    Downsides are that increasing rent is difficult. I'm probably losing 10% rent a month and that is allowing for the fact that I don't have an agent. If I rented to a new tenant I could charge 15-20% more though 10% of that would go on tenant find and agency fees, redecorates between tenants etc A big downside would be that evicting would be difficult.
    • mn2203
    • By mn2203 11th Apr 18, 9:15 AM
    • 41 Posts
    • 3 Thanks
    mn2203
    • #7
    • 11th Apr 18, 9:15 AM
    • #7
    • 11th Apr 18, 9:15 AM
    What other information do you have on the tenant. Is she on housing benefit? Wash she in arrears and the council are dumping her on a private landlord as they have no responsibility to house her?

    I've had both great council tenants and I've had council tenants who have left me out of pocket and trashed my house. And you could get the same with private tenants as well.
    Originally posted by mugatool
    Hi

    Tennant currently in temporary accommodation with the council so they're looking for a stable place for her.

    Yes she'll be on housing benefit, so my rent will be made up from that and a small contribution from the tennant.

    Unfortunately my local authority have no council properties.

    Yes - always a gamble lol :-)
    • mn2203
    • By mn2203 11th Apr 18, 9:20 AM
    • 41 Posts
    • 3 Thanks
    mn2203
    • #8
    • 11th Apr 18, 9:20 AM
    • #8
    • 11th Apr 18, 9:20 AM
    Are they paying you the market rent? Is it guaranteed? Future rent increases?
    What happens when the lady is no longer eligible for council help with rent, either because she starts work or because she meets a working partner? Will the council still pay the rent/ agree to house her?
    What happens if you want the property back?

    Risks on every tenant, I wouldn't rule it out. I have a similar situation, though the tenant found the property directly. The upsides are that the tenant wants to stay long term (no voids) and is now unlikely to find a new rental, council pays the rent on time. Tenant does minor repairs and redecorates, generally looks after the place.
    Downsides are that increasing rent is difficult. I'm probably losing 10% rent a month and that is allowing for the fact that I don't have an agent. If I rented to a new tenant I could charge 15-20% more though 10% of that would go on tenant find and agency fees, redecorates between tenants etc A big downside would be that evicting would be difficult.
    Originally posted by silvercar
    Thanks Silvercar, that's some great questions that I will certainly ask.

    It isn't much less than market rate, an agent has given me a rate but I know it's inflated. Plus this way I feel I am helping out someone who can't afford to rent privately and assist the homeless situation in my area - it's not always about the money is it :-)

    As you say - you could charge more but sounds like you have a great tenant who looks after your place.

    Thanks
    • mugatool
    • By mugatool 11th Apr 18, 9:20 AM
    • 12 Posts
    • 6 Thanks
    mugatool
    • #9
    • 11th Apr 18, 9:20 AM
    • #9
    • 11th Apr 18, 9:20 AM
    Hi

    Tennant currently in temporary accommodation with the council so they're looking for a stable place for her.

    Yes she'll be on housing benefit, so my rent will be made up from that and a small contribution from the tennant.

    Unfortunately my local authority have no council properties.

    Yes - always a gamble lol :-)
    Originally posted by mn2203
    To me that sounds like she was evicted from a previous property if she is in temporary accommodation. Of course you can be evicted for a variety of things, not just the non payment of rent.

    You could interview her and find out a bit more info. Are you in the SE, if the council can't pay all of the HB will she be able to cover the rest adequately.
    • mrginge
    • By mrginge 11th Apr 18, 9:22 AM
    • 4,447 Posts
    • 8,129 Thanks
    mrginge
    Hi

    Tennant currently in temporary accommodation with the council so they're looking for a stable place for her.

    Yes she'll be on housing benefit, so my rent will be made up from that and a small contribution from the tennant.

    Unfortunately my local authority have no council properties.

    Yes - always a gamble lol :-)
    Originally posted by mn2203
    So you are not renting to the council then.

    I have to agree with tom9980
    • AdrianC
    • By AdrianC 11th Apr 18, 9:29 AM
    • 17,184 Posts
    • 15,488 Thanks
    AdrianC
    Renting to the council = you have a contract with the council. They pay you, no matter whether there's a tenant there or not. You don't even know whether there's a tenant there or not. The tenant may change regularly.


    Renting to the tenant = you have a contract with the tenant. The tenant is legally responsible for paying you, whether they're part funded by the council or not.
    • mn2203
    • By mn2203 11th Apr 18, 9:30 AM
    • 41 Posts
    • 3 Thanks
    mn2203
    To me that sounds like she was evicted from a previous property if she is in temporary accommodation. Of course you can be evicted for a variety of things, not just the non payment of rent.

    You could interview her and find out a bit more info. Are you in the SE, if the council can't pay all of the HB will she be able to cover the rest adequately.
    Originally posted by mugatool
    Well, the previous property was her parents. I will meet any tenant before they move in and will have a say on who lives there, which would be good.

    Certainly a great question to ask what if her circumstances change - thanks :-)
    • theartfullodger
    • By theartfullodger 11th Apr 18, 9:48 AM
    • 9,448 Posts
    • 12,664 Thanks
    theartfullodger
    Done any education on being a landlord? Your posts indicate absolutely not.

    Do RLA or NLA intro course: It will serve you way way more in both time & money than it costs.
    • Cakeguts
    • By Cakeguts 11th Apr 18, 11:01 AM
    • 4,129 Posts
    • 5,777 Thanks
    Cakeguts
    She got evicted from her parents house because a) this was the only way that the council would take responsibility for housing her or b) her parents couldn't stand her antisocial behaviour and the drug dealers turning up at all hours.

    Which one do you think it is likely to be?
    • jimbog
    • By jimbog 11th Apr 18, 11:06 AM
    • 670 Posts
    • 1,072 Thanks
    jimbog
    This has been discussed before:
    http://forums.moneysavingexpert.com/showthread.php?t=5783403
    The problem with quotations on the internet is that you can never verify their authenticity - Abraham Lincoln
    • G_M
    • By G_M 11th Apr 18, 11:14 AM
    • 43,802 Posts
    • 51,772 Thanks
    G_M
    Yes the mortgage company and freeholder have agreed to this.
    Originally posted by mn2203
    You have not made it clear if you will be

    1) renting to the council (who then put her in the property), or

    2) renting to the single mother (who was introduced to you by the ccouncil)

    this is important.

    If 1) above is true, you are creating a commercial tenancy. It is unlikey your mortgage lender has agreed to this type of tenancy. Please confirm.

    If 2) above is true, you are creating aan AST, but have all the insecurity or renting to a tenat who has no salary and may not be abe to pay the rent.

    edit: and yes, why are you repeating the question you asked before? You had lots of advice back in January!
    • mn2203
    • By mn2203 11th Apr 18, 12:31 PM
    • 41 Posts
    • 3 Thanks
    mn2203
    You have not made it clear if you will be

    1) renting to the council (who then put her in the property), or

    2) renting to the single mother (who was introduced to you by the ccouncil)

    this is important.

    If 1) above is true, you are creating a commercial tenancy. It is unlikey your mortgage lender has agreed to this type of tenancy. Please confirm.

    If 2) above is true, you are creating aan AST, but have all the insecurity or renting to a tenat who has no salary and may not be abe to pay the rent.

    edit: and yes, why are you repeating the question you asked before? You had lots of advice back in January!
    Originally posted by G_M
    Thank you, I am considering both options above.

    And I have never asked this question before so was not given any advice in January! But I will go and read that thread posted above, thank you
    • Owain Moneysaver
    • By Owain Moneysaver 11th Apr 18, 12:50 PM
    • 7,941 Posts
    • 8,739 Thanks
    Owain Moneysaver
    The council would like to move in a single mum, early 20s with a young child ... this could be a long term thing
    Originally posted by mn2203
    It won't be a long term thing. As a mother with one child she'll be a priority candidate for a two-bedroom as soon as it becomes available (or as soon as she gets pregnant again).
    A kind word lasts a minute, a skelped erse is sair for a day.
    • Owain Moneysaver
    • By Owain Moneysaver 11th Apr 18, 12:55 PM
    • 7,941 Posts
    • 8,739 Thanks
    Owain Moneysaver
    Well, the previous property was her parents.
    Originally posted by mn2203
    Then if they're homeowners with a good credit rating (which you will check) you can get them to sign a parental guarantee drawn up by a solicitor making them jointly and severally liable with the tenant.
    A kind word lasts a minute, a skelped erse is sair for a day.
    • Smodlet
    • By Smodlet 11th Apr 18, 1:16 PM
    • 2,908 Posts
    • 5,907 Thanks
    Smodlet
    edit: and yes, why are you repeating the question you asked before? You had lots of advice back in January!
    Originally posted by G_M
    Actually, G_M, AubreyMac received advice back in January; though the OP's questions may be answered on that thread, most start their own, I think (guilty, m'lud)

    "I didn't jump to conclusions; I just took a tiny step and there conclusions were." Buffy Summers.
    What is this life if, sweet wordsmith, we have no time to take the pith?
    Every stew starts with the first onion.
    I took it upon myself to investigate a trifle; it had custard, jelly, soggy sponge things...
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