Call for landlords who have used rent-to-rent operators

Call for landlords who have used rent-to-rent operators

0:09 AM, 19th February 2024, About 2 months ago 10

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The Government is looking to regulate the practice of rent-to-rent under the Renters (Reform) Bill, where landlords let their properties to a third party who then sublet them to tenants.

The move will see landlords being made liable for the behaviour of rent-to-rent operators and allow rent repayment orders to be issued against them.

Now, the National Residential Landlords Association (NRLA) has been invited to feed-in to a consultation that aims to understand the impact of these schemes on landlords and tenants.

And it is now calling for its members to share their experiences and opinions on rent-to-rent arrangements, whether positive or negative.

‘Landlords who have entered into rent-to-rent agreements’

Eleanor Bateman, the NRLA’s senior campaigns and public affairs officer, said: “We want to hear from landlords who have entered into rent-to-rent agreements, either knowingly or unknowingly, and how they have been affected by them.

“We also want to hear from tenants who have rented from rent-to-rent operators and what their experience has been like.”

She added: “Rent-to-rent schemes can work well for some landlords and tenants, but they also pose significant risks and challenges.

“We want to ensure that the Renters (Reform) Bill does not penalise landlords who have acted in good faith and that it protects tenants from rogue operators who exploit the system.”

Temporary accommodation for homeless or vulnerable people

The NRLA says that rent-to-rent schemes are often used by local authorities, charities and social enterprises to provide temporary accommodation for homeless or vulnerable people.

However, they are also used by short-term let companies, corporate lets, and unscrupulous individuals who may overcrowd properties, breach licensing requirements, or fail to maintain standards.

Ms Bateman says that in some instances, landlords may even be unaware that their property is being sub-let.

She adds that the prevalence of rent-to-rent schemes have led to an attempt by the Government to protect tenants from the effects of poor tenancy and property management.


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Comments

Bernard Mealing

11:09 AM, 19th February 2024, About 2 months ago

I have some Rent to Rent and They work very well. The Renter rents to the homeless via the council.. Most are short term lets and over the course of a year there is often 2 or 3 families house awaiting more permanent house. I wanted to do similar myself but could not get the council on board. Evidently it seems you need a special licence.. If they interfere too much with rent to rent, then after the term of the lease I will sell up. I only want LHA or similar tenants..

Reluctant Landlord

13:20 PM, 19th February 2024, About 2 months ago

R2R surely does not come under the RRB remit as it stands at all because this is a commercial arrangement between the provider and the owner. THIS arrangement is outside of the scope as no tenant is involved.

A tenant does not have a direct AST with the property owner (ultimate LL). Any rent paid does not go the ultimate LL. There is no direct T & LL owner contractual connection so there cant be any obligations from one to the other as the R2R company IS in the middle.

Sounds to me, if legislation were needed on the R2R practice, then it be best be done on a standalone basis as the arrangement is specific - there are 3 parties in the arrangement and not the standard 2.

I am not saying tenants or LL rights/obligations are any more or less in a three party arrangement, but they have to be acknowledged as clearly defined as such.

Otherwise you risk bolting on the R2R on the back of something clearly not designed to accommodate for this from the start.

Bernard Mealing

14:02 PM, 19th February 2024, About 2 months ago

Interesting R L. In my case case I lease to the Company (the renters ) and they rent to the City Council. and it is a tenancy that is HELD by the council. because they can move tenants at quite a short notice I an told and if the family cause any problems THEY the council move these people on. NO Sec 21 etc

Reluctant Landlord

14:19 PM, 19th February 2024, About 2 months ago

Reply to the comment left by Bernard Mealing at 19/02/2024 - 14:02ahhh you mean the tenants have a licence with the Council - allows the council to move them as and when. (The tenants security of tenure is a lot less than if they held a direct AST etc).
The Council uses the property as offered to them by the Company - of which is ultimately provided by you
I expect the deal is the Company then checks the property etc and if any issues reports tenants to the Council then the council them move them on if necessary.
The tenant pays the Council (as this counts as temp accommodation which they have to pay for). The Council pays the Company a flat rate for the contractual period (say 4-6 years) to provide them with a property of X size and in turn the Company offers you a fixed rental income for the use of your property. You get no voids. You don't need a Selective Licence (as tenant contract is with the Council) and if it is families only, its not classed as an HMO either
Is this Company a National one or local to your area?

Bernard Mealing

14:47 PM, 19th February 2024, About 2 months ago

R L Local to me.

I have an empty house The rent to Rent company visit and we decide on what needs doing to bring it up to council standards. When ready we then issue them with a lease say of three years ( I believe that is important ). and I walk away. and collect the rental as agreed

FRI. and in three years time I am assuming we start again.

It suits me. I have my rent plus a little bit for good measure. No agency fees and no phone call for three years.
Is there any way we can talk. ???

Michael Booth

6:01 AM, 20th February 2024, About 2 months ago

The tentacles of socialism ever increasing regs ,last time l looked we voted for a conservative party not socialist liebor.

Reluctant Landlord

9:48 AM, 20th February 2024, About 2 months ago

Reply to the comment left by Bernard Mealing at 19/02/2024 - 14:47
be good to know the area you operate in. Not sure how to take a chat off line without putting personal info on here....

Bernard Mealing

9:58 AM, 20th February 2024, About 2 months ago

Reply RL. Not sure either. Don't really want to disclose that over this site. Not sure of the rules

John Melling

17:06 PM, 20th February 2024, About 2 months ago

The NRLA's call for feedback on this proposal closes tomorrow 21st Feb. Presumably this is driven by deadlines for Government discussions. No time at all for such an important topic!!

TheBiggerPicture

21:18 PM, 20th February 2024, About 2 months ago

Reply to the comment left by Michael Booth at 20/02/2024 - 06:01
Reform Party is where you need to go for if you are looking for the conservative party of old.

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