Exempt accommodation providers – who are their agents?

Exempt accommodation providers – who are their agents?

8:49 AM, 19th July 2022, About 4 weeks ago 5

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Has anyone released their property to or entered into short-term lease arrangements with a managing agent who then goes on to organise the accommodation and support services for Exempt providers in the Birmingham area?

Are you an Agent that provides properties for this purpose?

I am keen to determine if the same Agents also take on houses for the purposes of family temporary/emergency accommodation for either the same Providers or for the Council direct?

At one time you used to be able to release your property to the Council direct, but not anymore. I understand they are looking at measures to encourage LLs/owners to ‘micro tender’ – in other words, offer up properties to the Council for this purpose….but how long is a piece of string?

Meanwhile, I have properties in areas where licencing has now been banned (to try and stop the rise in EA and issues that come from this), but where there is a shortage of family-sized properties. There is zero reason/too high a risk for me to rent to benefits families directly, but I would consider leasing them to BCC so they could use it as temp accommodation.

Is anyone in the same boat?

DSR



Comments

Michael Johnson - Amzac Estates View Profile

9:31 AM, 19th July 2022, About 4 weeks ago

We have a property that was a 10 bed HMO that was leased to a care company.
As they claim housing benefit then they claim an allowance for the ‘support’ element we decided that we wouldn’t want to be in the line of fire
So with the right legal advice the property was leased on a commercial basis on a Fully repairing / insurance basis. There was a schedule of condition carried out prior to the lease and this forms the dilapidations cost at the end of the lease.
We have had a few altercations with the local authorities but always fizzed out when they realised the were in a dead end.
Not sure if this helps you though!

Jeremy Brine

9:56 AM, 19th July 2022, About 4 weeks ago

I’m in a similar position with a much larger HMO that I recently bought and I would like to let out on an FRI basis to a single tenant to take over the management and repairs of the property etc. I’m in Reading about 30 bedrooms! Any ideas as to whom I should approach and how? Councils do not appear to be wanting to take over building management directly and the local Housing Association aren’t interested either. I’m baffled with all the shortages in housing and the reasonably high demand? I’m looking to redevelop it in a few years and would like it handled by someone else during that period.

David

11:31 AM, 19th July 2022, About 4 weeks ago

Read about some of the problems that can arise with rent to rent schemes before committing yourself.

Jeremy Brine

13:18 PM, 19th July 2022, About 4 weeks ago

Reply to the comment left by David at 19/07/2022 - 11:31I understand there are commercial risks that with all arrangements require due diligence on the tenant. But 1954 Act and rent repayment (see judgment in Rakusen v Jepson & Ors [2021]) issues aside, what are the other key problems? Yes you need to ensure you let to an entity of financial credibility etc and you need legal advice to draft an appropriate lease agreement setting out clearly the FRI obligations…but I can’t see any other red flags?

DSR

22:01 PM, 19th July 2022, About 4 weeks ago

Reply to the comment left by David at 19/07/2022 - 11:31
I have tried to find out as much as I can but what I really need is to find an agent that does take on property as per OP then see the contracts they offer. Without this I don't know what they are offering V risk.

BCC in particular is completely dependent on exempt providers for HMO's I dont know how they would house anyone at all if no private LL's gave up their properties to agents. With LHA so low for a three./four or more bed house to house a family no BTL LL are interested so they all go down the HMO route.

BCC have a total of 14 yes 14, 4 bed houses available to them last year for housing families, yet thousands of families on the waiting list and in em accom. All I want to do is release family houses to them so they can house most in need. If they then go on to find them perm houses great, but this would be a better (and cheaper) alternative than em accom yet all they want to do is get a LL to take on a family direct.

BCC use 'preferred suppliers' for the HMO side to do this and give them contracts for 6 years, so there must be agents to do the same for family houses? Without understanding who these agents area and what they offer then I how are they ever going to secure family houses?

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