Renting to a social care business

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    Renting to a social care business

    Hi all,

    I potentially have a taker on my first buy to let property. They are a social care. My agent advised that the carer(s) will also live with the tenants in the property.

    Judging from Companies House records, they only registered in Mid-2017 and haven’t filed any records.

    They want to take the property for a year, then potentially renew for another 5 years lease and would consider buying it from us if we want to sell up. The rent offer is good. Sounds like an offer I can’t refuse. Should I jump in?

    Have any of you wiser heads on the forum had any experience in dealing with such tenants? what are the things I should watch out for?

    Questions i I struggle to find any answer for are:

    - what safeguards would I need in contracts - perhaps a guarantor & Should I request a higher deposit?

    -what is my exit strategy if things go wrong? Some say S21 doesn’t even apply if rent isn’t paid and I have to evict.

    -would it invalidatemy insurance? I acquired the property through a limited company /SPV and have standard Landlord insurance?

    Any advice / wisdom / pitfalls ahead gratefully appreciated.

    apologies if the questions have been asked before or if there is a separate thread on this, please kindly point me in the right direction. I have tried searching but other threads have been about dss tenants and leasing to the Council.

    looking forward to hearing from you all.

    Best wishes,

    NewDawn

    #2
    Sounds like a business. Can't be an AST, so lots of issues...

    Comment


      #3
      Renting to a company is not the same as renting to people.
      For a start, it can't be an AST, which may be an issue for insurance or BTL lending.

      It does mean that s21 notices aren't available to you.

      You really don't want a 5 year lease with a company (or at all).
      Particularly a new company with no history or credit rating.

      With respect, I think you need some research and training in being a landlord.
      This is fairly basic stuff to have to research when you've already embarked on a business.
      When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
      Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

      Comment


        #4
        Originally posted by BrandNewdawn View Post
        Have any of you wiser heads on the forum had any experience in dealing with such tenants? what are the things I should watch out for?
        Yeah. Steer well clear of this sector of the market. This is a market where the clients deserve a good deal and a lot of care. Sadly a lot of legislation doesn't allow you to offer that while protecting yourself. So avoid until such time as the law changes -- or charge a very large rent commensurate with the risk you are taking.

        Comment


          #5
          Thank you for your prompt response. That was my initial response but thought I might be prudent and sense check.

          my first sentence should read they are a ‘social care business / company’.

          any further thoughts from you and other members would be much appreciated.

          warm regards,
          BND

          Comment


            #6
            Thanks again for all the replies. Yes, it’s all part of the learning curve and this is part of the research. Much appreciate any further advice. If any has had a success story renting to a social care business / company and what is needed from the landlord perspective, it’d be great to hear your stories.

            Best wishes.

            Comment


              #7
              Social care could range from probation hostel, or drug rehabilitation, through to little old ladies. I think five year business lets are most commonly at beginning of that scale!

              Comment


                #8
                Hi all,
                Thanks again for your replies and advice.

                Our management agent met them a couple of times and have been quite positive as she dealt with clients like this before hence I was hopeful.

                Will look into this a lot more closely from now on.

                Warm regards.

                Comment

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