Hi, I am a Landlord with a 4 bed property. I have been approached by a care service provider who house vunerable adults with learning disabilities from the council and after seeing some of their other properties in person and researched the company on companies house im happy to proceed. My question is around the contract. My mortgage is on a residentual mortage and does not allow subletting but does allow renting to companies. As the directors will not be residing there it would be the people they will be supporting - this doesnt seem like a viable option. It has been suggested i could prepare an AST for each tenant and place the company as a guarantor however the council may not agree with their refferals to sign the AST due to data breach. (I have still yet to check with them). If they dont agree to AST’s any other ideas of workarounds anyone knows of?
Thanks
Do not do it .This has been on other posts .Walk away.
You should search the forum.
Been discussed several times.
Very high risk.
I’ve seen some of the other posts and whilst high risk, its worth asking questions and doing homework to potentially make it work for all parties involved. If there’s any other responses im open to reviewing and exploring.
Google rent to rent issues before deciding
Thanks @david122 i have done. But not sure i’m being clear. I wouldn’t be able to sublet anyways so I’m looking to use an AST for the people in care directly with the council and using the care company as a guarantor so not a ‘rent to rent’ situation so they will pay the rent on behalf of the people in care.
Do the people you’d be letting to have the capacity to understand the terms of the tenancy agreement? If not then I doubt you would ever be able to enforce its terms or evict them and however supportive the care company may appear, their legal duty is to their clients, not you, so they would probably actively block your attempts.
Its a good question to ask the council for sure -their ability to understand an agreement of this nature may be looked at by the council or an assigned carer if needed as well im assuming…but thats only an assumption i can make so will verify with them. As i imagine they would have some form of ability or ability to agree to the care company who will be looking after them in my property.
What status will the carers have? Will they be resident? Will there be some sort of separate contract with the company over care/their involvement?
You should probably run the whole thing past a solicitor when you get all the answers.
I would run it to the dustbin or local tip.
David Smith and landlord law have a contract in place for a rent to rent.
An AST is not ideal
He has a webinar video I think, on youtube, from a landlord law conference on line which may educate you on this and make you think otherwise
How old is the company?
I am with the others on this one
Run for the hills
Every time you get councils or homeless or vulnerable you initially deal with great front people with convincing assurances and it appeals to your caring side.
Then you do it and the reality is completely different
Listen to the experienced folk on here and run away ( dont walk !)
That’s a very kind thing to do.
It is kind but foolish .help will soon vanish
I assume you already have an HMO licence and your mortgage company allows for an HMO.
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