Legal Eagle required for council approved rent to rent contract?
I am looking for a solicitor well versed in looking at commercial contracts with a property owner and a rent to rent company.
Due to Selective Licensing (SL) occupancy restrictions, I am finding it increasingly difficult to find tenants required (one family-sized unit) for a large property that has recently been fully renovated.
The council has direct long-standing contracts with 6 organisations that they use to supply them with temp accommodation and they are in need of large houses. The tenants are on licence with the council and are placed in the property, run by the organisation – which has a direct contract with the property owner. One has made me an offer and sent through a draft contract.
I know the downsides, but the property could be similarly not very well looked after by a tenant I have a direct AST with and then I have the issue of getting them out myself. In this case it means I can be hands-off, and avoid having to get a SL, there are no voids and because it is a big property the reality is the first family that goes in will inevitably stay as the council has no bigger properties to move them into.
Contracts offered by the companies are from 3 – 6 years. Tempted to go for the three years and see how it goes. Rents are fixed over the term so after 3 years the LHA will inevitably have to increase so my thinking is I can then enter another agreement after a rent increase is applied.
I just need a good solicitor to look through the contract and advise accordingly.
Anyone have any recommendations or advice?
Many thanks
DSR
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