I'm going to discuss the pros and cons of letting your property out to the council. To a new landlord particularly, the idea of having your property let out for a guaranteed rent for a guaranteed period of time can look very attractive. Very often councils will offer a reasonable rent and particularly in the downturn economy, having no vacant periods in your property can seem like a miracle. If you adored this article and also you would like to be given more info relating to 2018 Waec runs [1] generously visit the internet site. But don't get too excited yet. Here are some of the issues you need to examine. Firstly, some councils pay the rent directly to the tenant and then the tenant is supposed to pay you. However, I have often seen tenants spend all the rent money and then they have no money to pay you, the landlord. Evictions are difficult enough when you have to initiate them, but when you have to have someone else do it for you, and you are not allowed to be part of that process, it feels like an exercise in futility. When a tenant fails to pay your rent, you as the landlord have to show proof that the tenant didn't pay. The council doesn't have to show it, the tenant doesn't have to show it, but you have to show that proof. Then you have to wait for the council to initiate the eviction process. And once again, you have no control over any of this. So what started out looking like the answer to your prayers may well end up being your biggest nightmare.
Now we get to the terms and conditions of council rentals. The council reserve the right to rent your property to people who seek asylum, single mothers, the homeless, people on benefits, the indigent and the disadvantaged. Then you say to yourself, well that's OK as long as the council abides by its rules that it will return the premises to the way they were at the beginning of the rental. On the surface that probably sounds acceptable. We have already seen how long it takes to evict a tenant during which time you have received no rental. Now let us look at another aspect. You may need to sell your property quickly because you need the money. This is where the difficulty comes in. The council will tell you that first they have to find another place that is available for your tenants. Whereas the economy greatly influences the buying and selling of property - so that you have a buyers market and a sellers market - when you are dealing with the council, it's the exact opposite. There is always a shortage of council housing. What this translates to is that you no longer have autonomy over your own property, because it could take a year, two years, five years, before the council will find another suitable property to move your tenants into.
I had a client who came to me in tears about a property that she had rented to the council about a year ago. The first twelve months everything ran smoothly, then the funding was cut to the council and the council had to move the tenants out. The original agreement was that the premises would be restored to its original condition. This never happened. The place was destroyed by the tenants. My client had to spend thousands of pounds restoring her property.