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					                                            Private Sector Leasing: Findings of the Workshops.

                        GROUP 1   GROUP 2           GROUP 3              GROUP 4                 GROUP 5                 GROUP 6                 GROUP 7
What would make
landlords want to
consider a PSLS?
Financial return        10-15%    10-15%            10% (Letting agent                           Yield of 6%. Minimum    Looking for a long
                                                    has asked 12.5%)                             of 3.5% although this   term arrangement but
                                                                                                 is poor return          with an ‘opt out’
                                                                                                                         clause
Repairs –Major                                                                                                           Ongoing                 Opinions of this
                                                                                                                         maintenance during      differed. Some
                                                                                                                         the life of the lease   landlords wanted a
                                                                                                                                                 full repairing service
                                                                                                                                                 & others didn’t as
                                                                                                                                                 they have their own
                                                                                                                                                 contractors
Repairs – Minor
Tenant Selection                                                                                                                                 Some landlords said
                                                                                                                                                 they would
                                                                                                                                                 appreciate some
                                                                                                                                                 details of the tenants
                                                                                                                                                 history


Needs to fit with
mortgagees rules
Needs to fit in with                                                      Some landlord’s
Insurance rules                                                           wanted to know who
                                                                          would be
                                                                          responsible for the
                                                                          Buildings Insurance.
                                                                          Wants this checked
                                                                          at the beginning of
                                                                          partnership. They
                                                                          want to be sure that
                                                                          the tenant adheres
                                                                          to the policy
Guaranteed, regular
income
Return of property in
decent condition
Effective & timely
housing management
of the property
Expertise in                                                                                                                                     Wants to avoid
managing property                                                                                                                                dealing with HB staff
over & above what
agent’s offer*
Details of Grants
available from the
Council to bring the
property back into
repair and what
different Councils
have to offer

                                                                                                 Ref: SafeHaven/LegalOpt/WorkshopResults/KL/HO                            1
                                              Private Sector Leasing: Findings of the Workshops.


                          GROUP 1   GROUP 2           GROUP 3           GROUP 4           GROUP 5                GROUP 6                GROUP 7
Don’t want set up
costs or management
fee
Lease Conditions
Flexibility in duration                                                                   Preferably 2-3 years
                                                                                          with option to renew
Choice of lease type
e.g., repairing/non-
repairing
Mgt of tenants- Noise
Mgt of tenants –
ASB
Mgt of tenants – take                                                                     Most important
care of the property
Rent increases –
Annually
Want reassurance
that if the tenant is
evicted the HA still
liable for the rent if
the tenant doesn’t
leave.
Length of lease- 5
years
Eastern Landlords
Asscn approved (or
National Asscn)
Agreed Access
Responsibility for
repairs – in detail
Levels of rent that can
be guaranteed
Payment process
Notice period
Withdrawal options
Dispute arbitration
procedure
End of lease details
written into the lease
– i)
Hand-back condition
ii) renegotiation
Guarantees of                                                                                                    But with an opt out
continuity of income                                                                                             clause if things are
                                                                                                                 not going well
Not to assign the
lease during its term




                                                                                          Ref: SafeHaven/LegalOpt/WorkshopResults/KL/HO           2
                                               Private Sector Leasing: Findings of the Workshops.


                           GROUP 1   GROUP 2           GROUP 3           GROUP 4                 GROUP 5                 GROUP 6             GROUP 7
Wants payments                                                                                   Prefers D/D                                 D/D
direct into bank by
standing order.
Preferably monthly in
advance
Process
Schedule of Condition                                  With video or     With photographic       With photographic
                                                       photographic      evidence                evidence
                                                       evidence
Should be awareness
at first viewing
otherwise
consultation and
funding issues
Would like to see
draft agreement at an
early stage
Would like some
indication of possible
income at an early
stage
Gas safety check                                                         Landlords would like    HA to deal with after
                                                                         copies                  an initial one by the
                                                                                                 owner
Electrical safety                                                        Landlords would like    HA to deal with after
check if appropriate                                                     copies                  an initial one by the
                                                                                                 owner
Check for ownership
& legal constraints
Second point of
contact
Insurance Issues
Information about
potential
funding/grants
‘Get out’ clauses if the
HA isn’t performing
Mgt Conditions
Named Contact or
small team
Site/property visit for
suitability
Agreed condition                                                                                                         With photographic   With photographic or
report at the outset                                                                                                     evidence            video evidence
with regular review
Timely action for ‘un-                                                   Particularly if this
tenant-like’ behaviour                                                   affects the Buildings
                                                                         Insurance
Close supervision of                                                                                                                         Landlord does not
tenancy/day-to-day                                                                                                                           want to be involved at
issues                                                                                                                                       all with sub-tenants

                                                                                                 Ref: SafeHaven/LegalOpt/WorkshopResults/KL/HO                   3
                                               Private Sector Leasing: Findings of the Workshops.


                           GROUP 1   GROUP 2           GROUP 3           GROUP 4           GROUP 5                GROUP 6                   GROUP 7
Record of property                                                                         Would prefer not to
condition each time                                                                        know then they can’t
new tenant occupies                                                                        be liable
the property that
would be made
available to the
landlord
Wants threshold for                                                      (See below)
repairs expense
above which landlord
is consulted
Would like to see
individual choices at
time of sign up
regarding pets, type
of families etc but be
careful not to be too
picky
Gardens &
management issues
to be responsibility of
the RSL
Repairing
Obligations
Flexible
Linked to L/L return
Shared risk                                                                                                                                 Fair wear & tear a
                                                                                                                                            balance depending
                                                                                                                                            on the length of lease
Clarity of
responsibility
Acceptable
tradesmen
Tenant’s                                                                                                          Servicing of boilers
responsibilities:                                                                                                 Gas safety
i) Internal decs                                                                                                  All internal & external
ii) carpets                                                                                                       repairs built into the
iii) Any damage                                                                                                   lease agreement
caused by tenant
Landlord’s                                                                                                        None apart from           Structure & internal
responsibilities:                                                                                                 insurance of the          repairs
i)          All external                                                                                          building
ii)         All internal
iii)        Structural &
            fixtures
  Repair responsibility                                                                                           The sub-tenant to
   to be defined in the                                                                                           have no
          lease                                                                                                   responsibilities for
                                                                                                                  repairs etc




                                                                                           Ref: SafeHaven/LegalOpt/WorkshopResults/KL/HO                           4
                                              Private Sector Leasing: Findings of the Workshops.


                          GROUP 1   GROUP 2           GROUP 3           GROUP 4                 GROUP 5         GROUP 6               GROUP 7
Mortgage
Conditions
Want options for HA’s                                                                                                                 When the property is
to transfer & take on                                                                                                                 empty. Invalid after
insurance                                                                                                                             30 days if the
                                                                                                                                      property continues to
                                                                                                                                      be empty
Restrictions on letting
to welfare groups
Would accept most                                                       But wants individual
tenants                                                                 choices at time of
                                                                        sign up regarding
                                                                        pets, types of
                                                                        families, but be
                                                                        careful not to be too
                                                                        picky.
Buy –to-Let options
(Allow to borrow
125% of rental
income for
Development)
Emergency
Repairs
Damage to the
property
Risk to person’s
health
Leaking gas pipe
Burst pipe
Heating breakdown
Lack of power
Lack of cooking
facilities
Fire
Broken Windows
Broken locks                                                                                                    Including lock outs
Blocked toilet
Agreement to fix
Publicise list of                                                                                                                     Would like an
categories & what’s                                                                                                                   information pack on
included in each                                                                                                                      minimum
category                                                                                                                              requirements
Tenant
Damage/neglect to be
covered in the lease
& not passed back to
the landlord
Would like to see a
ceiling of cost or type

                                                                                                Ref: SafeHaven/LegalOpt/WorkshopResults/KL/HO               5
                                              Private Sector Leasing: Findings of the Workshops.

of repair to be defined
                          GROUP 1   GROUP 2           GROUP 3           GROUP 4              GROUP 5                 GROUP 6   GROUP 7
Urgent repairs
(24 hours)
Heating failure
Hot water failure
Non-Urgent Repairs
(2 weeks)
Depends on
circumstances
Cyclical (as needed)                                  N/A
Dripping Tap                                                            (3 days to 1 week)
Repairs to flats
(Internal repairs as
external repairs will
be covered by
landlord’s insurance)
If repairs to House
(particularly detached
then HA to take
responsibility)
Blocked drains
Faulty locks
Broken glass –
smashed windows
Non-urgent repairs
(30 days) but target
accessed if
additional ‘Health &
Safety’ concerns
Internal decoration
Damage to fences
Outside paving

Cyclical
Maintenance
Boiler servicing
Gas checks
External gutters
End of lease term
Joint inspection
Use of photographic
inventory
Wear & Tear – Write                                                                          Wants carpet in a
off carpeting                                                                                good condition to let
                                                                                             the property at the
                                                                                             end of the lease term
Built in appliances to                                                                       Some commercial
be avoided                                                                                   landlords don’t mind
                                                                                             providing these. One
                                                                                             landlord said he

                                                                                             Ref: SafeHaven/LegalOpt/WorkshopResults/KL/HO   6
                                                                  Private Sector Leasing: Findings of the Workshops.

                                                                                                                             could provide
                                                                                                                             furnished
                                                                                                                             accommodation too
                          GROUP 1                   GROUP 2                   GROUP 3                   GROUP 4              GROUP 5                  GROUP 6                  GROUP 7
Opportunity to
renegotiate for a
further term
Want the date of the
end of the lease to be
the final date property
is handed back to the
owner
‘Buy To Let’
Wants details of types
of accomm. They
should be buying.
Want clear
information before
they buy
Want a quick
turnaround on
decisions to take on
property with what
rent, repairs &
insurance
responsibilities each
party will have.

*NB: Need to clarify but it was stated that agents cannot take tenants to court; it needs to be the landlord.

One commercial landlord at the Chelmsford workshop summed up ‘fair wear and tear’ as being able to re-let the property at the end of the lease, without having to do any further work to the
property.




                                                                                                                            Ref: SafeHaven/LegalOpt/WorkshopResults/KL/HO                      7

				
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