Council using providers to supply them with private properties?

Reply to the comment left by LL Minion at 20/04/2023 - 15:03
I think you would need your solicitor to check the contract for you (and you need to factor that cost in). I also think that you shouldn't rely on the tenant company to provide the inventory; you should arrange the inventory yourself.

If you don't want to deal with tenants you might be better off with a reliable agent.

I agree with many of the comments here (mostly if not all, negative). If you take it up there is a high possibility that you will disappointed with the outcome and it could be expensive. If you are waiting for a positive, supportive response to help you make the decision to accept the agreement, I don't think your going to get one. Take note and move on.

I worked most of my career in aerospace design and on a sub contract basis. The “client” ie Boeing, Airbus etc would engage my services via an employment agency. The client would sign a contract with the agency for the agency to supply my services to the client and I would sign a contract with the agency to provide my services on a contract basis to the client.
The client would pay the agency weekly invoice, the agent would deduct their cut and I would get paid by the agency.
The client liked this because legally (no pension or holiday pay etc) they were arms length from me the sub contractor and if any problems occurred they were the agency’s and subcontractors problem and I could be fired at will, unlike a permanent employee.
This actually is why I went into BTL as I had no other pension to rely on apart from the meagre state pension.
It would seem to me a comparable situation described here. What the council really wants is to secure the accommodation (your property) by paying an intermediary (the company) to sublet your property and house their social tenant. If anything goes wrong the council can walk away and say legally and contractually it’s not their problem.
That’s my take on this arrangement anyway. I have read many discussions on this subject and most times the landlord has deep regret over entering into this arrangement as the council are often total liars and don’t care if your property gets trashed. One council even placed a number of tenants in the property and then declared the property an unlicensed HMO and fined the landlord.
Be very careful.

Robert touches on two really important facts. To be clear, your lender will not allow you to use for temporary accommodation. I am not aware of any lenders that allow this. So first call is to bank to check, don’t take anyone’s word for this, find out for sure. You could choose to ignore this, it’s only the bank, how will they ever know…..Well, you might get away with it, but when you need to remortgage you’ll come unstuck for sure.
However, the most important thing is insurance, your current provider won’t cover it. Speak to your broker and see if you can get insurance, my guess is probably not. But again check so you know for sure.
Most people who try rent2rent, would not do it again. We did it, there was no exit clause in our agreement, so the end was a nightmare, never again.

Reply to the comment left by Bristol Landlord at 20/04/2023 - 19:49
which council was this?

Problem is for us all its getting to the point you are being shafted left right and centre, no wonder those new LLs are wondering which way to turn.

On the one hand you can pick your own tenant and this is a minefield and have the issue of fake ID/ references etc or pick an agent to find a tenant. Are they really going to be any better? - only you have to pay them for the pleasure too. Talk now of agents using AI to 'formulate' reference/credit records....

Benefit tenant? Could argue 'guaranteed' rent
if you get paid UC/HB directly but again its a risk as there is normally no job referencing, credit history etc. On paper their credit looks great as they have never applied for any as they know they will get refused. A clear score is not always indicative of a perfect tenant. Inevitably they will need to pay top ups...will they?

Death of S21 is looming (anyone know if this is going to be retrospective to AST's before the law Bill is passed or only after a certain date after??) so LL's are wary now of who they take on.

I get Minion's position but what else do you do and what is really viable?

Reply to the comment left by DSR at 24/04/2023 - 17:09
The problem with benefits tenants as a landlord is that if it is found that the benefits tenant is not eligible for benefits then the law allows the benefits agency to get the money back off you as the landlord.

Reply to the comment left by Beaver at 24/04/2023 - 17:15agree but I had this out with DWP before. It allows them to potentially request it back...but..As the person claims (I have no input/knowledge of what they claim for and eligible for or not) and it is their responsibility to tell DWP about a change of circumstance, then how can a LL be found to be at fault for a non eligible claim?
The DWP has to prove that the LL 'had reasonable knowledge' and was complicit if this were the case for it to be upheld. I tend to go get people sent to me by the council and I make them check they go through their claim with them beforehand. I ask for a copy of the councils own income assessment as a way of 'proof of earnings' too not just taking the tenants word for income by screenshot of their journal. That way you can show the decision was made at the start of the tenancy based on X situtuon. If it changed thereafter it was tenant led by default.

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