Government agency offering ten to twenty yr lease on rental property

david4791

Hello,
I have a rental property which a government agency is looking to take for a ten year to twenty year lease, sounds good except for the 8% cut they offer below current Market rates, however I can live with that for the security of rental payments.

Any experience out there in terms of issues etc?

The bodies involved are the national housing association and RAS

killers1

david4791 wrote: »

Hello,
I have a rental property which a government agency is looking to take for a ten year to twenty year lease, sounds good except for the 8% cut they offer below current Market rates, however I can live with that for the security of rental payments.

Any experience out there in terms of issues etc?

The bodies involved are the national housing association and RAS

Is the rent reviewed during the term of the lease? If so how often? If not, bite their hand off!!

silja

As far as I know, you get no say in who lives in the house, and are still responsible for maintenance etc.

david4791

Incorrect,

You are only responsible for annual household insurance,

The maintenance and repairs are covered by the agency, as are the ptrb fees. You are correct to say you have no say whatsoever on who they put into the house.

david4791

Killers, the rent is reviewed periodically, as I said the only snag is they offer 20% less than Market rate for 10 to 20 yr leases and 8% less than Market rate for leases to 5 yrs

dearg lady

Seems like in 20 years time you'd be gettin a lot more than todays rates, even taking a low inflation into account.
The 5 year one at -8% sounds excellent tho.

GetWithIt

Assuming this is RAS, the property also has no liability for the NPPR charge.

I was somewhat surprised when I found that out myself. I'm sure there's a perfectly cromulent reason.

killers1

david4791 wrote: »

Killers, the rent is reviewed periodically, as I said the only snag is they offer 20% less than Market rate for 10 to 20 yr leases and 8% less than Market rate for leases to 5 yrs

20% discounted rent is a bit steep. I think the 5 yr option is a no-brainer

tony.aspergers

It seems that the Government are, perhaps quite rightly, trying to get people with long term housing needs off Rent Supplement and onto these Applicant Sourced housing schemes, administered through agencies and local councils.

Tenant pays council rate (minimum of just under €20 weekly) and is fully vetted by the Council through Garda cheeks etc before any agreement is signed. Landlord gets market rate minus the discounts mentioned etc.

This is particularly welcome for those with disabilities, in need of housing.

Penguino

Yes I have experience of it in a few apts in D1.

At the time we were involved in the choosing of the tenants, also we got a set of mgt rules drawn up and if they were broken then the tenant was out.

If you are having difficulty in renting your place it is a great system. If you are getting decent yields then its a no brainer to me