You trust the Local Authority? !!! I admire your faith in them
& when the council rent all of these houses, where are all the private tenants going to live, especially as prices are likely to rise with fall in supply.
We need more houses, not just a change of who owns / operates the existing ones.
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Hopefully itās not too long before we see this actually tested.
I do this with a migrant housing charity that Iāve worked with for about 10 years. I know them personally and trust them so happy to sign over a property (commercial lease) for that period for BMV but guaranteed income, albeit 5 years not 10 but with an option to extend. Happy so far. Feels like a weight off to know that I donāt have to do anything in regard to that property anymore.
I wouldnāt do it with the council
Rent to rent arrangements are rarely in the landlords interest and not recommended.
Well government really messed up on this. Iām on UC and am paid a month in arrears so the one month in advance only payment brings it up to date. In theory can a landlord say ā are you (willing) to pay more in advanceā rather then demanding. Then write that into a tenancy stating tenant offered x amount in advance. If tenant says no they canāt or thatās illegal, do not go any further.
My understanding is the tenant can offer to pay in rent in advance. As long as the landlord hasnāt requested it in the terms of the tenancy. This has been raised many times with student tenants in mind who often pay their rent in advance for the term rather than monthly because they receive their maintenance grant at the beginning of each term.
At the moment, a landlord can ask for as much advance rent as they want, but they cant then take any further rent until its used up.
The Renters Rights Bill proposes to limit the amount of advance rent to 1 month, but parts of the proposal are still under debate.
The tenants do not pay the landlordās mortgage from the rent. Most landlords have interest only mortgages. From the rent money, the landlords pay rent (bear in mind they have paid a deposit to purchase the property. The landlords have to pay for all the certificates required for renting the property, maintenance, maybe furniture and license to the council.
It is like saying that when you hire a car from a car hire company, you are paying for the car. Similarly to shop in a supermarket, one is paying their mortgage interest or even mortgage capital. The tenants need to be careful what they say. If they feel they are paying their landlordās mortgage, they can buy their own property by having 2 to 3 jobs and saving for the deposit. Once they purchased their own property, they can take care of their boiler, furniture and all maintenance themselves and find it more exciting way of living as they will pay their own mortgage. The crucial aspect is for tenants to find the deposit.
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I would not trust the council at all. Tehy do nto ahve economies of scale. It is just the opposite. A lot of builders and handyman take council for a ride. They know council needs them, they do nto charge less to the council. The council cannot manage the property themselves, usually pass it on to the housing associations. Councils do not have in-house workmen as they would not know how to manage them. They will never inspect the property. They will all sorts of people there and the property the landlord get back after 10 years will cost the landlord a lot more money then what they made in 10 years.
I have rented out one of my proeprties to a charity. It worked well for 3 years, so extended for 5 years. A change of manager and I find it has not been looked after. They are supposed to keep the proeprty clean and not remove any lighting etc. The basic maintenance they should be doing but they have not done so. When the 5 years are over, I shall not be renewing the contract. I do all the certificates and all the repair work and as they made the contract, I cannot increase the rent a lot, only the inflationary rate but no more than 5%. The insurance premium are higher as the tenants are not in my tenancy agreement and no control over them. I have noticed the tenants banging the doors when I have been there with a gas engineer. I have complained the the charity. The doors etc looks pretty bad, no painting or any maintenancy in 7 years. I hate to think what condition I shall get it back next year. This is in one of the expensive areas of London, near the hospital, near a station and university. If I rented it out to private tenants I would get 100% more as I have 2 similar properties but less value and get double the rent. They have messed up the house under a new manager.