GUARANTEED RENT FOR LANDLORDS - HELP FROM LETTINGFOCUS.COM
LettingFocus.com property mentor David Lawrenson explains how buy to let investors can get guaranteed rent through private sector leasing schemes. Ask us for advice.
Buy to let expert David Lawrenson of LettingFocus.com says, "There is a way that landlords can get a guaranteed rent for up to 5 years with no agent’s fees to pay and no voids."
You simply lease your investment property to a housing association, local authority or other third party provider working for a local authority - who then sublets it for you to people on their housing waiting list.
And since it is the ultimately the government that is paying the money, there is no chance of the rent not being paid.
Lease periods depend on the local authority and local housing needs but periods of 2, 3 or 5 years are commonly used.
Often called “private sector leasing schemes” the rent is usually set at the outset of the period and is in effect government money. The rental paid may be around 10 to 20% below private market rates but is paid straight into the landlord’s bank account usually on a monthly basis.
Rents Paid Under Private Leasing Schemes Vary
Each local authority area / housing association has different terms and conditions and the amounts of rent paid vary as do the specific requirements of each operator.
In the case of a property I have had for 3 years with a London housing association, the rent is about 10% less than market rents but they fix and pay for plumbing and heating jobs as part of their own unique contract. And with no voids or letting agency fees to worry about it works out very well indeed.
Some operators of private leasing schemes require the property to be part furnished whilst others will require no furnishings – not even a cooker, shower or washing machine - thus saving on inventory management and insurance costs too.
The most common type of property required is two beds, though some areas are looking for three bed properties too.
Basement flats rarely seem to be required and neither are studio flats nor houses in multiple occupation (HMOs). The standard of the property required is high - any old property just won’t do.
Some mortgage lenders won't let you let out a property under a property leasing scheme but most do.
About David Lawrenson and Lettingfocus.com
This is just a brief guide. If you need more advice on private sector leasing schemes or how to get a guaranteed rent please contact me.
I’m the author of the buy to let book “Successful Property Letting - How to Make Money in Buy to Let” which is the UK’s top selling property title. Click here to buy the book: Successful Property Letting.
What’s unique about LettingFocus.com is that we offer independent information for landlords because unlike most people in the buy to let and property “advice” business we are not linked to a property company, developer, estate agent or loan financier.
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