I came into some money and was looking at buying some property to rent out as income , but have heard horror stories of people wrecking houses and high maintenance costs .
then it was suggested that you can provide your house to the local authority and they will lease it from you for 80% of normal , but they look after repairs ect...
any thoughts ?
I've a few thoughts but if I typed them I'd be banned.
Here we go again, buying to let and getting the state to pay your mortgage
Why not let the house out to "professionals" like in the good old celtic tiger days and take care of your own investment.
BUT , by letting to the local authority i have 10 years hassle free .
anybody got any experience with this sort of thing ?
The local authority is not liable for repairs. They may give you up to one month's rent to cover damage by the tenants they themselves nominated. That's all the protection you have. The RAS scheme (what you're talking about) has many such flaws.
You also remain the landlord to the tenant in place and all your obligations under the various acts remain as if you "let it to professionals".
The only difference is the fact that you have a contract with the local authority to the side of the landlord tenant relationship that states the local authority will guarantee the rent payments directly to you and they will be responsible for getting the tenant to pay their share.
Some local authorities will allow YOU to nominate tenants that you will accept and the contract ends if/when those tenants leave. This is the only way I'd entertain using that scheme at present. The idea of giving up nomination rights to my property with no compensation when the local authority puts a family of a certain type in there and your whole house is stripped for its copper would scare me witless-no thanks!
In summary, it's not what you're looking for (guarantees, maintenance etc.) by the sounds of it.
They tenant the property, and pay the rent directly to you. You look after all repairs and issues the tenants have. Talk to someone who is actually partaking in the scheme- you seem to have a totally unreasonable idea of what the council are willing to do........
I don't think OP is talking about RAS, but rather the long term leasing scheme.
I think the Council is quite picky about which houses they take. Read up on standards and check in your Council if they are operating the scheme and in what areas. You are right, rental is about 80% of Market rates, and you have absolutely no say in what tenants are selected.
I was going to go on the RAS scheme and I found a property with a Landlord that was considering doing it.
The asking rent was €900.
The council had two options.
One option was to let us rent the property for 5 years and all responsibilities for repairs etc was the Landlord's job.
For this option, the council would have paid €750 per month.
The other option was to rent the property for 10 years and the council would take over all responsibility and they would source the tenants if we left.
For this option, the council would pay the Landlord the full €900.
In the end, we didn't go for it, but this is my story.
RAS has its' pros but it has its' cons too so you should really do your research before you commit.
fingal coco will take property five year term all responsibility remains with landlord you can put tenant in and then move them onto ras. as long as they are on welfare and are on the housing list . on five year also you can give to council and they have nomination rights. 10 year option council looks are everything such as repairs etc . property is returned in condition first taken. on ten year option rental offer is alot lower.
in most cases ,for ras ,The council picks the tenant,
you have same obligations, re repairs etc as with any tenant.
The main advantage is you are gauranteed the rent getting paid,for at least 2- 3 years .
its likely tenant will be a single mother with 2 kids at least.
IT suits some landlords, so its up to you to choose.
eg if the washing machine, breaks down, its still up to you to get it fixed.
excellent views , food for thought , thanks