Do you have a recurring problem with voids?
Net HMO yields looking like Single Lets?
Have you considered diversifying your portfolio using a social housing model?
Let-Co specialise in supplying social housing contracts to landlords struggling to fill their properties.
We work with providers in the homeless, mental health, refugee, abuse and young persons sectors.
After many years working alongside our Registered Provider partners, we have established national relationships, allowing us to achieve contracts from 2 to 10 years on some of the best rates currently seen in the sector in most regions in the country.
Although the model on average achieves rental figures of anywhere between 0%-30% below market rates. The figures are net for the length of the lease and there are no bills, council tax or maintenance costs.
1. How does Social Housing work?
Social Housing arrangements are typically set up in such a way that the Social Housing Provider will lease the property directly from the landlord. They will then use the property to fill any contracts in the area. They will then pay a monthly rent agreed on signing the lease.
2. What kind of Registered Providers does Let-Co work with?
At Let-Co, we work with with Government Registered Providers and Charities. This ensures that they are properly funded and regulated; providing a strong rental guarantee.
3. How long are typical lease contracts?
Leases that we deal with typically range between 2 to 10 years. They also include regular rent reviews and break opportunities for both parties.
4.How much rent can I expect?
Rental figures will depend largely on location and contracts available at that exact time. We have experienced figures that match market rate and figures up to 50% below market rate.
5. What is the standard tenant type?
As well as rental figures, tenant type also depends largely on location and available contracts at the time. We have worked with Providers to fill contracts such as Asylum Seekers, Battered Wives, Abuse Victims, Young Adults, Ex Offenders And Homeless Individuals.
6. Can I refinance the property under a SH lease contract?
Yes it is possible to refinance under a Social Housing Lease as they are your tenant. You will have to check with your lender that they are able to do so. If you have any questions about this, please get in touch and we can put you in touch with our brokers who are experienced in the Social Housing field.
7. What are my responsibilities as a Landlord?
As a landlord, in most scenarios, you would be responsible for the structure of the property; ie, windows, walls, boiler and any leaks. The Housing Provider is responsible for any tenant damage such as broken door handles, doors and carpets. However, there is a fine line between tenant damage and fair wear and tear. Fair wear and tear is also the responsibility of the landlord- as it would be with any regular tenants.
8. Can I do this without Let-Co?
Yes this is possible to do without Let-Co, however we have been working with our Registered Provider partners for over 4 years, enabling us to achieve some of the best rates. Another reason we are able to do this is because as a management agency, we are able to provide volume to quickly fill mandates for any coming contracts, making us the preferred partner, rather than a one off landlord.
Mr. S - March 2020
Our Client in Lincolnshire came to us with a property he had been struggling to rent out with an underperforming agent. There were no viewings and no interest in the property.
We were immediately very interested in helping him out because we were confident in our knowledge and connections in the area.
From the start, we were open and honest with our customer about his property, the area and why he had been having trouble with voids. We discussed the numerous options available to him and proceeded with the guaranteed rent option.
Within 2 weeks of coming to us, he is now achieving a monthly rent for the property guaranteed for 5 years, pays no bills and has a hands-off management experience.
Mrs R - May 2020
Mrs R purchased a property that was sourced, refurbished and now managed by us, demonstrating the efficiency of our eco system.
The property was quickly passed over to a Registered Provider in the area who have agreed a 3 year lease with her, guaranteeing her rent for the lease period. The property achieves an attractive yield and great net figures. We are actively looking for our next opportunity to deliver a similar deal.
Interested to arrange a call with us to discuss diversifying income streams in your portfolio using a social housing model?
Get in touch below and we will arrange a call as soon as convenient.