Wanted to get some info / opinions on this enquiry I recently received. I would normally stay away from these sorts of arrangements which sounds like a rent-to-rent deal. So, out of curiosity, I wanted to know if this is a legit thing that the NHS do, and if anyone’s had any experience with it? This is the message I received:
“We would like to pick up your property on a long-term rental agreement for young NHS professionals. The reason why is because we are contracted by the NHS to provide end to end service for their employees moving to London for work. We are not only obligated to find the properties, we are also paid to make sure that their staffs are also well looked after whilst at the accommodation. Some of the service we provide includes fortnightly cleaners, monthly inspections, quarterly room inspections and also minor repairs has to be fixed within 48 hrs. In return we will guarantee your rent as it comes from a direct debit and also we take care of the minor maintenances up to £100 every month.”
I’ve done this before. My letting agent arrange for this and it went well. I didn’t have to do anything.
I think the only problem is each tenancy is only 6 month long (as they are temporary nurses), so there is a small gap between tenancies. You should clarify that with the person arranging the contract.
You have to be a bit careful as my experience was with a lovely pair of filipino nurses. At the last moment I found that the two ladies who presented themselves were only half the number of actual tenants, they each had a friend - not a boy friend, another female filipino nurse - and they planned to have 4 people sharing the 2-bed flat, sharing the actual beds. They just want to make as much money as possible to send home. I had to tell them no as it would become a HMO and I’m not licensed for that. It seems quite normal for them to put the main focus on reducing their costs but they aren’t familiar with our legal environment.
Yes rent to rent companies do exist and generally do a good Job in looking after your property. They may have contracts with the NHS or it may be their tenant profile. I assume you’re near a hospital?
If you have a mortgage I would check with your mortgage provider if they allow sublet tenants or a corporate let.
I would have to dispute that rent to rent companies generally do a good job. The whole model is deeply flawed. You only need google ‘rent to rent problems’ or look on the forums to read the horror stories. I would not recommend getting involved in it at all.
We can google any problems such as Boeing engine problems and you’ll a plethora of issues… does that mean we should never fly again? Of course not…. There’s gonna be problems in any business including the rental sector. It’s up to yourself as a landlord to do the right research and ensure the persons renting your property is reliable, consistent in paying the rent and professional.
Yep. Had this with 2 Portuguese ´skilled professionals’ found by a LA. Turned out to 4 supermarket shelf fillers. The only true thing was that they were Portuguese.
What happens for the landlord when the next pandemic arises or you get a bunch of unhappy tenants and your promise of guaranteed rent evaporates? What happens when you find that you can’t make the model pay and you keep taking on more and more properties and then can’t effectively manage them?
As I said every business has problems and what you see as an issue with rent to rent is subjective. Myself as a Landlord I have 4 properties which I given to rent to rent companies to manage. Some of them do corporate Lets and some do service accommodation. It has worked out quite well for me even through the pandemic apart from 1 property which I had to give a few months grace, but they have made me whole. As stated you have to do your own research and maintain a good standing with the people you deal with. Rent to rent it’s not ideal for every property, and or anyone who owns a property.
Rent to rent is like “horses for courses”. It suits some landlords and not others. It also depends on the location and the type of tenants and the rent to rent company itself. If all the precautions are taken and the rent to rent company understand their role, responsibilities and the liabilities then it works very well for the owner of the property. But if the rent to rent company is slack and do not work diligently and make demands on the work to be carried out by them, or wish to pay late every month, then it does not work. It is a good idea to have a 6 or 12 month break clause. I have rented out twice to the rent to rent company. First was supposed to be for 5 years, but the company director got too greedy and made a lot of mistakes and went into getting investors and could not pay them back, so that lasted for less than 4 years. The second one time let before covid, lasted for 2 and half years. I was pleased that there was a minimum responsibilities for me, just to replace appliances, insurances or major work. No change of tenancy or inventory in the interim. Each time they left, I had to carry out a lot of maintenance work but not every year or every 2 years. Again, I have let that property to another rent to rent company, but I included 12 months break clause, which I am glad I did. So far I am not sure it is working well. But next 3 to 4 months will tell me whether to let them go. I was also approached at one point by someone who stated they have NHS staff who they rent out to and always looking for properties. I was not convinced as my personal experience tells me that these tenants do not pay good rent and may overcrowd my house. I am picky about my tenants and very careful about references etc.
Stafford, you are fortunate, if you have found a good rent to rent company. I am looking for a good one in greater London. The last and current one, I found through a LA and they were sure they would pay rent on time. But my experience so far with them has been bad and will not meet up to discuss all the issues at the LA office.
There are far more rogue operators in the market than good ones. Even the good ones can go bad if circumstances change, like a pandemic. Reports on the forums suggest some of the larger commercial and not for profit ones are particularly bad at keeping promises about maintaining the condition of the property for example.