At Finefair Ltd, we have always wanted the best for our clients, regardless of the service they are using. This is why we work to provide the best resources for private sector leasing City of London can offer. We can give you more information about the options as well as the potential benefits. Ultimately, we want to ensure you have peace of mind about rental income and management.
What happens with private sector leasing?
As a landlord, exploring a private sector leasing scheme may be in your best interest. It will be a hands off endeavour to say the least. In addition, the process isn’t difficult to understand. You begin by letting a property to a local authority. From there, the authorities use the building to accommodate their choice of tenants. They will primarily focus on people at risk of becoming homeless or already without a permanent residence. So, low-income, elderly, and disabled people will all be able to benefit.
If you are unsure whether this is the right step for you, hopefully knowing a bit more about the schemes will help.
The schemes are very beneficial
You could be a landlord that wants to get a healthy income by taking on tenants. If so, you are probably wondering what these schemes can do for you. You could find a tenant by yourself after all. The fact is that there are many advantages.
Guarantee that income
When you sign up to a private sector leasing scheme, you will acquire a guaranteed income. The council you associate yourself with is going to pay you a set amount of money each month. They will often pay in advance too. It is the best way to protect your cash flow and avoid losses.
As for your tenants, it will officially be the council. The people living in the property will in turn be council tenants. They will likely only need to pay a small part of the rent, or sometimes none at all depending on circumstances. However if the people living in the property don’t pay their share, there won’t be any impact on you. This is a huge advantage over dealing with a tenant directly and having that risk of none or late payment.
Vacancy issues
If you are a private landlord, your building could be empty at times, even if you agree a contract with a tenant. There is also the void between tenancies to think of. Both of these can result in lost income. If you choose the best private sector leasing City of London can offer though, this is not your concern. The council shall pay you even when the house is vacant.
Saying this, having no-vacancy situations is rare with schemes. After-all, there is always a need for housing. Councils can struggle to provide it and more people may also have difficulty accessing it if prices are high. The end result can be lots of people waiting for the council to find homes for them. With all of that in mind, if you join a scheme it is very unlikely your property will be empty for a long period at any time.
You will have assurances against damages
Schemes will also have rules about property damage for your benefit. There may be a scenario where the people living in the home cause damages or even alter the building without permission. You won’t be liable for any repair bills here; the council should make it right for you.
Hands-off solutions
Most importantly, these schemes have a hands-off approach. Your only job here may be to initially make sure that homes are ready to live in. After that the council is responsible for most of the other things. You may only have to oversee general maintenance as well as take on wear and tear repairs. However, even these may not be your responsibility.
Start private sector leasing in the City of London
Landlords have a number of tough decisions to make. What kind of tenants do you want? How much work do you want to do? Do you need guarantees on income and protection against voids or damage? There are lots of reasons to choose a leasing scheme with the council. For example, there will be no need to handle tenants and the council will take care of most of the management work.
If you do decide this kind of scheme is for you, Finefair Ltd can help with setting up and more. We are local council partners with relationships with authorities across the capital. As a result, we can give the best insights into private sector leasing City of London can offer. Contact us to find out more today.
