Is NHS family relocations offer a suspiciously good deal?

Is NHS family relocations offer a suspiciously good deal?

0:03 AM, 15th October 2024, About 2 months ago 15

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I am currently advertising my property for rent in London and was recently contacted by HPL Estates. They claim to have been in operation for 55 years, with their main office in Maidenhead and four branches around London.

During a phone conversation, a representative emphasised their contractual agreement with the NHS to support family relocations.

Subsequently, another representative visited my property to assess it and discuss their offer. Key elements of their proposed deal include:

Offering £2,750 per month with no fees for a 2-year contract, including a 12-month break clause. This is higher than my advertised rate of £2,600. I would sign a management contract, allowing them to act as my agent. HPL would provide the tenant.

The tenant would sign an Assured Shorthold Tenancy (AST) agreement directly with me as their landlord. HPL would be responsible for any repairs and maintenance. I would remain liable for obtaining the necessary certificates.

To evaluate the contractual terms, I used ChatGPT to compare the sample AST provided by HPL with the standard NRLA AST. This comparison revealed several noteworthy points:

HPL includes a penalty of £1,200 per month if a tenant fails to meet a notice to quit deadline. A penalty of £50 per day is imposed for late rent payments. These penalties may be considered excessive and potentially challengeable in court.

The NRLA AST appears to be clearer and more detailed in comparison. In researching HPL Estates online, I found their website to be unimpressive and struggled to find additional information. Aside from their Companies House registration, I discovered no reviews or tenant experiences. They also have no presence on platforms like Rightmove, and even ChatGPT found no substantial digital footprint for them. However, there might be other resources I haven’t checked yet.

As I am relatively inexperienced in working with corporate letting agents, I am seeking advice on the best course of action. The offer seems almost too good to be true, so I would greatly appreciate insights from anyone familiar with such arrangements to help me make a well-informed decision.

Thanks,

Geoff


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Marlena Topple

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10:44 AM, 15th October 2024, About 2 months ago

If your property is mortgaged then check the terms of your mortgage product in case this prohibits any tenancy other than an AST. Ditto your landlord insurance.

Andy

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11:01 AM, 15th October 2024, About 2 months ago

The effort you have gone to to ascertain the background and credibility of the company suggests you are someone for whom having peace of mind is important. Is £150 (max) extra per month worth it to you?
I manage my own properties in London and every now and then field an outfit offering something slightly away from the norm. The value of my time needed to ascertain whether the offer stacks up has never been offset by the modest extra rental income being offered.
One other point: if the AST is with you directly then is this actually a corporate let anyway?

DPT

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11:13 AM, 15th October 2024, About 2 months ago

Rent to rent arrangements are not recommended for a host of reasons, (google rent to rent problems to see some).

This will be a commercial contract so doesn't compare to an AST. You would need a specialist housing solicitor to check the contract to ensure your safety. Some operators have been known to amend the forfeiture clause to make it difficult/impossible to recover possession of your property.

You would not be able to claim any consumer rights if things go wrong as its a business deal.

You will have no control over who they place in the property and a number of landlords have complained about so called "problem families" causing nuisance and damaging their properties.

Finally, its worth noting that the Renters Rights Bill currently working its way through Parliament changings the landscape for rent to rent completely. Any non-social housing operator will not be able to guarantee you vacant possession at the end of the period as they may not be able to evict their tenant. The Bill also makes you, the superior landlord liable for the mistakes of the rent to rent operator in the form of Rent Repayment Orders that could see you have to hand back up to 2 years rent.

Paul Essex

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12:14 PM, 15th October 2024, About 2 months ago

Be careful, 'NHS' has been used by several scam agents to reel in customers

GK

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13:19 PM, 15th October 2024, About 2 months ago

Reply to the comment left by Marlena Topple at 15/10/2024 - 10:44
Thanks for the comment Marlena.

They intend to use an AST to mitigate that problem.

GK

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13:28 PM, 15th October 2024, About 2 months ago

Reply to the comment left by Andy at 15/10/2024 - 11:01
Thanks Andy, I appreciate you taking the time to comment.

That's a good observation and point about peace of mind. I have used a few agents over the years in various capacities. With one notable exception, it hasn't been easy on me or my tenants.

On your other point about whether it is actually a corporate let, that's part of my confusion and would welcome peoples thoughts on that.

GK

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13:30 PM, 15th October 2024, About 2 months ago

Reply to the comment left by Paul Essex at 15/10/2024 - 12:14
...and it is good bait. It certainly opened me up to consider using them.

Tom Jenkin

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13:43 PM, 15th October 2024, About 2 months ago

Have they filed any accounts at company house? Who are the directors?

I have just checked the company on the government website, and it listed as active, has a list of directors, filings for accounts .

You should be aware that it's filings state the company is dormant and has been for the last 23 years.

It is primarily a holding company.

Sounds like someone has hijacked the name and is trying to scam .

Marlena Topple

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14:32 PM, 15th October 2024, About 2 months ago

Reply to the comment left by GK at 15/10/2024 - 13:19
But you will be letting the property under a commercial agreement to the agent which is the problem.

Ranger78

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16:04 PM, 15th October 2024, About 2 months ago

I had loads of these call me, They are rent to rent outfits in the main. You will have no control over who goes in your house and if you are a bit inexperienced, err on the side of caution. A few of these companies are likely to be legit and decent but is it a risk you wish to take. Also bear in mind they will probably be charging the tenants quite a bit more than they give you in order for them to get their margin. Proceed with caution and if you can carry on renting out yourself, why not continue, at least you minimise risk.

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