Government take long lease on your rental property?

Zascar

Forgive me for the very vague question here, but a friend told me about some scheme where if you have an investment property, there is some scheme the government are doing where they essentially take it on a very very long lease - 20 years - but in that time they take care of absolutely everything in that time. After the 20 years you get the property back. Can anyone enlighten me on what this is and how you avail of it?

the_syco

Zascar wrote: »

they essentially take it on a very very long lease - 20 years - but in that time they take care of absolutely everything in that time. After the 20 years you get the property back.

Sounds like a variation of RAS?

Zascar

Thanks yeah I think that's it:

http://www.wexford.ie/wex/Departments/Housing/RentalAccommodationSchemeRAS/
http://www.citizensinformation.ie/en/housing/local_authority_and_social_housing/rental_accommodation_scheme.html

I have a rental property which simply causes me a lot of hassle on a weekly/monthly basis. I'd love to be able to hand it over for a long period and no need to worry about it. Does anyone know if they are still accepting admissions for this? How do the value what rent you will get from it?

mikemac

Depends on your council, approach them and see if they are accepting. There isn't one single answer for this,

If accepted the property will be inspected and you might be asked to upgrade it. Windows are a common one. Any fire hazards like bars on windows will be noted. Any electrical work to signed off by RECI electrician, you need receipts for everything. Smoke alarms are needed. Lots of other small things

Rent is negotiated, it's market rate or slightly less due to the long term security.

It's not for 20 years, it's to be negoitated and I've heard of 4 years but of course that can be extended.

bobbysands81

It's the Social Housing Leasing Initiative.

The policy is set by the Department of the Environment, Community and Local Government but is administered in conjunction with your Local Authority and what housing need there is there.

Contact the Dept at 01 888 2000 and ask for the Leasing section, or contact your Local Authority.

Rent payable to you is usually circa 20% lower than "market rate". This reduction accounts for voids and management of your property by the Local Authority. As you know there is no scientific way of knowing what "market rent" is so you mightn't actually lose 20%.

Treehouse72

Zascar wrote: »

I'd love to be able to hand it over for a long period and no need to worry about it.

Not wanting to be confrontational Zascar, I would just say that if you think about it the above scenario is simply not going to happen. If it were that easy everyone would be doing it. You basically want the benefits of owning a property investment without the hassle. This is like wanting to win the World Cup without putting your football boots on. It's just not how the world works.

As I say, I'm not trying to have a go - I'm just saying you should probably downgrade your expectations if it was in the back of your mind that there was an easy way through this.

Zascar

No worries, as I said I literally only heard this mentioned so know very little about it. I did expect there to be certain downsides like below market rate payments etc, but I'd be happy with that really just to not have to have the weekly hassle of chasing my current tenant for rent.

I looked at the checklist and I think I'm good for most of it already. But can anyone tell me what a tax clearance cert is and what it means etc?

the_syco

I'm wondering do the CC reimburse you if the house you get back is either burnt to the ground, or if the structure is altered badly? After all, anyone living in a council house for 15 years will probably do a few changes to it without asking the CC for permission, as they may see the house as "theirs", rather than belonging to the CC...

Zascar

I'm told they have to give it back to you in the same state as it was when they took it over. They are basically responsible for the place in the time they had it.

A friend in work told me his sister does it and it works well for her. Yes you get slightly less money than market rates but its a great deal if the circumstances suit..

snubbleste

All this information is publicly available free of charge on the dept. of environment's website. Did you not look at this?

Ray Palmer

There was a guy who did this in Dublin and when he decided not to follow on and sell the properties the tenants became militant. The blockaded the street and in a not so friendly way scared off the potential buyers.
"You don't want to live here it is likely the house will suddenly catch fire" was said to me when I went to look at them.

RA tenants can have their own problems but this is going a step beyond and the entitlement such tenants can feel about what they will see as a council property could be trouble.