Council guarantee rent/bond

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  • Council guarantee rent/bond

    Me again!

    I knew I would need you guys sooner rather than later, esp as you were all so helpful in my last post! (is that enough sucking up? )

    I just wanted to know what you all thought about the council "paying" the bond or stumping up a paper guarantee in place of a deposit?

    I read a past post and saw what Johnboy said about it not paying rent arrears and utilities etc, however, I do have a guarantor in place for the tenant and I guess that would cover that?

    Please give me your no holds barred opinions as always!!

    SW

  • #2
    The aim is to obtain the rent.

    Best: T pays it.
    Next best: guarantor (e.g. Council) pays it.

    The whole purpose of a Bond or Guarantee is that L has recourse to someone with capacity to pay rent if T fails.
    JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
    1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
    2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
    3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
    4. *- Contact info: click on my name (blue-highlight link).

    Comment


    • #3
      My experience of them is quite good. They have always stumped up when necesary with very little fuss... but then we have claimed twice in about 4 years!
      GOVERNMENT HEALTH WARNING: I am a woman and am therefore prone to episodes of PMT... if you don't like what I have to say you can jolly well put it in your pipe and SMOKE IT!!

      Oh and on a serious note... I am NOT a Legal person and therefore anything I post could be complete and utter drivel... but its what I have learned in the University called Life!

      Comment


      • #4
        The one time I used it and needed to claim (£150.00 approx) they paid up. The only reason I would rather not accept it and rather the tenant paid the deposit is I believe you have more chance on the tenant looking after the property if they have some of their own cash tied up in the property.

        Harsh on the tenant I know but I have a reponsability to the landlord and we all go on experience.

        Comment


        • #5
          Hi Guys

          Many thanks for your help on this matter!

          Johnboy, the council said that they go after the tenant to get the money, if we claim and so it is in their best interest in the long run, which hopefully the tenant will understand!

          SW

          Comment


          • #6
            Council backed deposit gaurantee scheme

            Hi,
            I was wondering if anyone had come across this. I'm a new landlord and I am having to rent out my property for the second time. My BTL mortgage terms do not permit council tenants or tenants on HB, but today a potential tenant brought me some information from the council about a Deposit Guarantee Scheme, whereby a private landlord signs up for free to the scheme, the council introduces the tenant and guarantees the deposit- up to six weeks rent. No money is paid, but if there is damage after the tenant leaves then they will pay out. They will come and assess the property and do the inventory and even help out with the tenancy agreements etc.
            There are some references to housing benefits and Housing Allowances but it is not clear to me whether this is available for private tenants as well as council tenants. I intend calling the council on monday for them to explain this to me properly, but I was just wondering if anyone here knows about these. I have seen quite a few threads about tenancy deposit schemes and insurance etc but haven't seen any about this type of scheme.
            Any information would be much appreciated.

            Comment


            • #7
              I never knew that mortgage companies prevented people from renting to people on HB

              Anyway

              What the council offered us is a scheme where they will pay the 1st months rent and the deposit if we could find an house to rent that would accept us
              However due to the negative stigma attached to being on HB the chances of us finding anywhere was slim.
              They also gave us a list of landlords that are on the scheme and would rent to people on HB.

              Problem is now that the HB department dont make payments direct to the landlord anymore as far as I know which then puts you in a position of if you can trust the tenant to pay the money to you.

              Comment


              • #8
                Thanks for the reply.
                And yes, some mortgage companies do specify, this is the exact statement in the lending terms --

                Student lets and tenants claiming housing benefit, rent rebate or rent allowance are not acceptable. Likewise Asylum Seekers and people benefiting from Diplomatic Immunity are not considered acceptable as tenants.

                So this council backed guarantee is for tenants on HB or claiming some form of payment from the council then? The other point I infer from your posting is that if I join the scheme it implies I do accept people on housing benefit?

                Crafty tenant candidate, she knew I could not accept HB tenants because I told her and she made it sound like something completely different !

                BTW this site is great and I have learnt so much about being a landlord in the last few weeks, in particular the paperwork and legal stuff, its a nightmare!

                Comment


                • #9
                  Well the way it was suggested to me was if I could not afford the 1st months rent or deposit than they would pay it if it was proved I was being made homeless through no fault of my own which it was proved.
                  So if I was working they would still help me if I could not afford it which sounds great if you can find a place.
                  Now they do this in Leicester because of the chronic housing shortage that the council have so there working with landlords and HA really closely right now.

                  I do not know what you would have to sign upto but Im sure if you wanted working Tenants Im sure the council would agree to that.

                  There is loads of people going in and out of the Housing place all day long some working some aint

                  As you are new to being a landlord I suggest you find as much info out about everything as my current landlord doesnt know alot and over the past 6 months its been me getting him the info he needed ect...
                  Know your rights and all that.

                  Comment


                  • #10
                    council rent guarantee scheme

                    Hi am thinking about doing the above. Anybody else doing this?
                    Any thoughts or advise please.
                    Lou

                    Comment


                    • #11
                      What is it? I am curious about council tax - next year i will be a part-timepost grad student and wonder if i will have to pay or not?? Any one?

                      Comment


                      • #12
                        Originally posted by SherlockHome View Post
                        What is it? I am curious about council tax - next year i will be a part-timepost grad student and wonder if i will have to pay or not?? Any one?
                        Council Rent Guarantee is nothing to do with Council Tax. Perhaps start new thread re your query?
                        JEFFREY SHAW, solicitor [and Topic Expert], Nether Edge Law*
                        1. Public advice is believed accurate, but I accept no legal responsibility except to direct-paying private clients.
                        2. Telephone advice: see http://www.landlordzone.co.uk/forums/showthread.php?t=34638.
                        3. For paid advice about conveyancing/leaseholds/L&T, contact me* and become a private client.
                        4. *- Contact info: click on my name (blue-highlight link).

                        Comment


                        • #13
                          I was on a Council Rent Guarantee scheme for 3 years, and for me and my needs it worked very well. The property laid vacant for 5 months in which time I still received my rent. I was paid by direct debit each month on time. The property was required to be unfurnished, apart from net and heavy curtains, fridge/freezer and cooker.

                          My let was done through an agent, who as part of the contract, ensured to return the property to original state afterwards. They took care of all repairs to the property, I was not even notified of them. There were problems though, my agent was not so great on returning the property after three years, I had to liaise with the council to ensure tennants had somewhere else to go, before they moved them. Agents were in no hurry to return the property.

                          Tennants they placed in the house were not professionals, so when it was returned we had a lot of cleaning up to do afterwards. Oh and we were paid below market rates for the property.

                          Overall I would do it again, but my council have just stopped it.

                          Comment


                          • #14
                            My friend does this with Brighton and Hove council who produced a not-worth-the-paper it's written on inventory and who are a bit disorganised when it comes to liaising about repairs and Corgi gas safety certificate, for which it remains the landlords responsibility and where there are no guarantees made about the condition of the property.

                            In return, my friend has had a succession of tenants in that have annoyed the neighbours and freeholders with allegations about music, rubbish, dumped furniture and so forth.

                            Another friend complained bitterly about the condition of the property with a London council upon its return, including a wrecked cooker that was brand new at the start of the tenancy.

                            And when I had an assessment of my property in London, the housing association wanted me to provide furniture but to return the house empty (citing health and safety), remove locks from internal doors, fill in the pond, put in a door to the kitchen, remove glass shelves and basically indicated my property would be subject to extreme wear and tear...

                            So it's risky.

                            Comment

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