Do Housing Associations take a cut somewhere?

Do Housing Associations take a cut somewhere?

8:24 AM, 10th August 2020, About 4 years ago 12

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Does anyone know if and where a HA/Charity take a cut from payments when it comes to providing emergency/temporary accommodation?

We have a 5-year deal with a HA & Charity for the whole house. Currently, it is split into 6 beds – all sharing bathroom and kitchen facilities. We get a set figure rent.

If each room is let to a single person, does that mean that they are getting the LHA shared room rate accordingly for each tenant, or do they get more than this for each person by definition as they have provided the Council with emergency accommodation so the rate is increased?

I am only asking as I have another building that is split into four separate units all with their own private facilities and kitchenettes. These are under the LHA classification as one-bed flats and so incur a higher LHA rate. Is it just a case of asking for a total rent of 4 x this category from the HA knowing they get paid more for each unit they supply to the Council?

We would be happy with this 4 x total, but at the same time just curious as to how the process with HA’s and Council’s work on this basis. Seems shrouded in mystery to me especially as you ring up the Council, and they say they don’t have a preferred HA supplier list, they seem to go with any HA that can provide accommodation….

Can anyone enlighten me please?

Reluctant Landlord


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Comments

Robert M

12:38 PM, 16th August 2020, About 4 years ago

Reply to the comment left by Able Services at 15/08/2020 - 11:42
The requirement for you to provide storage space for furniture sounds ridiculous and I guess would be the "deal breaker" for many landlords. I always lease properties unfurnished, and then put furniture in to suit our tenant group. Yes, the furniture requirements for each tenant may vary, but that is for us to manage, not the property owner!

In relation to rent increases, when we lease a property we agree the rent with the owner for the full duration of the lease term. At the end of the lease term, if both parties wish to renew the lease then the rent level is re-negotiated for the next lease period.

Any rent increases we charge to tenants is nothing to do with the lease from the property owner, merely a reflection of our increased costs for the provision of the property (of which the rent to the owner is only a small portion). Any rent increase to our residents is linked to the Consumer Price Index (CPI) so is therefore limited to a reasonable level, or it is based on a full re-assessment of our costs of providing the accommodation so as to maintain our not-for-profit status.

I cannot comment on how other organisations may or may not carry out their business, but if they are genuinely a not-for-profit housing association or charity then I imagine it would be done in a similar way?

Penny DJ

1:01 AM, 4th October 2020, About 4 years ago

Reply to the comment left by WP at 12/08/2020 - 17:03
Sue Sims does social housing in Birmingham and is usually looking for property. Her company has Genie in the title. You will find her on Facebook either via her page or Partners in Property group.

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