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Working with your council to create Win/Win Solutions. Speak to housing officer to identify needs and build relationship Check out website to see what Local Housing Allowance is. Why. There are currently 1.7 million households on a waiting list for council Housing.
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Working with your council to create Win/Win Solutions Speak to housing officer to identify needs and build relationship Check out website to see what Local Housing Allowance is
Why • There are currently 1.7 million households on a waiting list for council Housing. • Repossessions are up by 92% on last year
Let to people who are on full benefits using an A.S.T. • Tenants will need to be on full benefit • Broad Rental Market Areas (BRMA) • Housing allowance is now paid to the tenant- Intention is to give more choice and responsibility to tenant. • Some councils will revert payment back to Landlord more easily than others- Usually if 8 weeks behind on rent or can provide medical evidence to prove not capable of managing rent themselves
Rent as Bedsits Income: £5200 per month Expenditure: £1800 Profit: £3400 Rent As B and B worst case scenario Income: £8666 per month Expenditure: £3500 Profit: £5166 Profit and Loss
Bed and Breakfast or Hostel type accommodation • Landlords have an arrangement with the homeless department of the council and provide emergency accommodation. • Invoices are made to homeless department of the council. • You can invoice per bed per night or per room if you have a family. • Clients are received under licence, which means that they do not need an AST and can be asked to leave immediately if there is a problem.
Government targets • The government has set targets for councils to reduce their use of bed and Breakfast accommodation by 50% by 2010. For some councils this is very unrealistic. Others no longer use B & B accommodation in their area but will send clients into other council areas.
Requirements for the HMO License • Emergency Lighting • Hard wired smoke alarms • Fire extinguishers and service contract • Fire Doors • Electrical testing • Public Liability Insurance • Windows restricted opening on 3rd floor rooms • Food Hygiene Certificates
Top Tips • Install CCTV in main entrance • Cleaner who enters rooms daily • Employ a manager who can relate to the tenants- but not one of them • Have kitchenette and ensuite in all rooms- easy to convert into bedsits if necessary • Keep kitchen locked at all times when member of staff not present • Only take clients in on a license
More Top Tips • Keep entrances and exits to a minimum- Alarm additional fire doors to discourage general use • Choose your area carefully be aware of your neighbors • Keep furniture simple and sturdy • Make sure keys can’t be copied or use changeable door codes • Try to mix types of tenants- If you have lots of families the wear and tear on the house increases.
Ways to make extra money • Sell tooth paste tooth brushes and washing powder to tenants • Charge to use washing machine- keep one for tenants use only in a locked room • Put electricity meters in each room- sell cards • Single people can share a room doubles your profit
Commercial Agreements • Housing Association • Home office • Usually 3-5 years • Will get 80% - 90% of the market rent • Reduces void periods • You do not have direct contact with the tenants or need to worry about day to day up keep of the property • Typical tenants single parent families and people on fully reliant on the state.
Property requirements • Central heating • Double Glazed • Cooking equipment • Safety glass if appropriate • Gas and Electrical safety certificates • EPC • Hard wired smoke alarms
Niche Markets • Youth Offending Service • Women’s refuge • People with Disabilities- supported care • MOD • Prison Service • People on the sex offenders register