What rental income from an outer London 2 bed ex Local Authority Flat in low/medium rise block?

[tricot39]

Thinking about buying a place in our neighbourhood to rent out and doing some sums to see if it might work out as a good investment for our kids. I will call the housing association who would manage it tomorrow but if anyone can give me an idea of the figures tonight that would be great.
Thanks

We have a 2 bed ex council flat in zone 4 that we rent out to a housing association for £628 PCM, but our contract is coming to the end of its two year term. We will most likely move to renting it privately as we should be able to get well I've £700 PCM after agent costs. Hth

thanks!

Isnt the rent going to be based on housing allowance for that area?
lha-direct.voa.gov.uk/search.aspx

thanks sunny - i knew there must be something like this around. odd it wasnt linked from our LA landlord pages. the calculator says 956 pcm....

lemon - i rented my old flat out privately but found it a bit of a drag. what has your experience been like with social tenants/housing association?

I suppose it depends on what sort of tenants you'd get if you rented privately - would they be people claiming benefits anyway? With 1 or 2 children (for a 2 bed this is what HA tenants would be).

Or would they be professional tenants? A couple without children? Are rents much higher? You will have more voids and you'll pay tenant finder fees.

We rent out ours for £1520pcm, a 2 bed flat in zone 1. We let it out privately to a couple of professionals. LHA is £300pw but we've never had tenants on HB.

we are zone 3 and it is just a bit too far out to be desirable for young professionals renting. mostly young families on low incomes in the rental sector - i think.

So you'd be getting much the same tenants privately or through HA and private tenants would likely be claiming housing benefits and only able to afford benefit + a small top up?

If that is the case I would have thought you'd be better going straight to HA - no voids, no finders fees, rent always paid.

Unless to be a HA property you need to vastly improve the property or spend more on maintenance?

Don't forget to build into your calculations a month vacant per year (when you will probably also need to pay council tax, check local council rules) and approx 10% maintenance, also any agency fees for finding tenants (usually around 10% of annual rent plus Vat) and management fees (another 7-8% plus VAT).

thanks!
our local housing association have confirmed today that they have a waiting list so are offering a rental/rent collection service for no "fee" but rents are reduced by 5% or so to cover costs/risk as they offer a guaranteed rent. when compared to private rent plus management fees there is not much difference to net income in the end..... hmmm lots to think about!

The net income may be the same, but which is less hassle?

that is the question! my experience of private letting was not exactly hassle free.... this HA option was appealing with the combination of tenant finder, guaranteed rent, offer of landlord training/licensing and return of flat at end of period in "original" condition. Is this too good to be true? what is the catch?

Sounds a no-brainer . . . .