Renting property to Council- Pros & Cons?

[Minimimimi]

We have a 2 bed property in zone 2, London- a few minutes walk from tube station. Our tenants of 8 years are moving out and we need new tenants.
My husband suggested renting out to the council and I was wondering if anyone have had any (good/ bad) experience before?
Thank you!

The agreement is usually that you hand it over to the council for a fixed long term - usually at least five years - and they guarantee to pay you rent (lower than market rate) for that period, and also take on the responsibility for repairs and maintenance and putting right any damages at the end of the tenancy.

I let my old flat out this way and it was fine. However, my flat was already ex-council and in a council-owned block, so I was less concerned about e.g. antisocial behaviour than I would have been had it been a street property / in a private block. Anecdotally, the council’s standard for repairs isn’t necessarily as good as you might have yourself; and some landlord insurance policies exclude council letting, so make sure you check beforehand.

We have friends who did this a few years ago in similar circumstances in inner London- they were moving abroad for a few years for work. I was involved as their 'agent' as I lived nearby and could step in if required (not that I was).

Obviously it all may have changed since then but their reasons were it was a guaranteed source of income, there was no hassle with letting agents etc and they would definitely have the property back at the end of the period. They also felt they were doing some good with their assets rather than ripping off someone on the private rented market.

My impression was that it seemed to work quite well - the council department seemed reasonably responsive whenever queries were raised and there were no problems. From memory they got enough income to cover the mortgage and a small surplus but could have got more if it was rented privately. The biggest thing they said was not having to worry about having to do repairs, get the boiler serviced etc.

They had a family move in who caused no problems and they moved out after the time was up to another council flat nearby. I think they were able to get the council's contrators in at the end to redecorate as well before they moved back. So yes a positive experience for them - I would recommend it

We had a friend who rented their flat to the council. It was a guaranteed monthly income but they had horrendous problems when their situation changed a few years later and they needed to live in the property themselves. The tenants were willing to move but the council refused to relocate them until our friend had gone through the full eviction process in court. The flat was also left in a terrible state. I’m not sure how common this is, but our friend would never rent to the council again.

Thank you so much @ComtesseDeSpair @ritet

A friend has just got her house back, four years after the end of the agreement because the tenants refused to move and kept on going back to court.

When she finally received the keys and entered, they'd taken the kitchen and doors with them and tried to convert the loft into another bedroom, complete with a hole punched into the roof and covered with plastic as a window. And, of course, they left everything they didn't want to take. Including the contents of their freezer on the living room carpet.

The council were actively obstructive when the end of the arrangement came around and have still not agreed to fix the hole on the roof or make it even vaguely habitable.

So even though I'm as far away from a raging Tory as you can get, there is no way on earth I'd recommend it.

No way in hell! The house next door had this, the tenants were antisocial and have trashed the house. The council will fix it only up to the cost of 2 months rent which is not enough.
The owner served noticed in jan 2020, they left 2 weeks ago (covid did delay it) but it went to court in November 2020. The council made the owner force them to evict via court and then struggled to rehome the family.
The owner still doesn't have the key, the house is still trashed and the council have made no real attempt to fix it aside from walking around the other day. The tenants also left loads of stuff in the garden they haven't come back for!

I let my old flat out this way and it was fine. However, my flat was already ex-council and in a council-owned block, so I was less concerned about e.g. antisocial behaviour than I would have been had it been a street property / in a private block.

That's an extraordinary thing to say!

@Westfacing

I let my old flat out this way and it was fine. However, my flat was already ex-council and in a council-owned block, so I was less concerned about e.g. antisocial behaviour than I would have been had it been a street property / in a private block.

That's an extraordinary thing to say!

Not really. When the council are managing the entire block its both easier and they have more incentive to tackle the antisocial behaviour of their tenants; and because the council is the freeholder of the lease, they can’t take action against the lease in the event of antisocial behaviour being caused by their own tenants. It would be a different story in a private block or converted house.

Goodness me, I’m so sorry to hear that @Amijustagrump and @NeverDropYourMoonCup. I was really hoping my friend’s experience was unusual.

do not rent to the council via an agent - lease was up and i gave 5 months notice and the council cld not find them a property and i had to evict them through the courts took 2 years to get it back - tenants are told to sit tight until the bailiffs arrive. the tenant then handed the keys of the property to a boyfriend and more legal proceedings council could not care less. they just use landlords as most of the tenants have been a problem to them in the past with rent arrears and anti social behaviour. do not i repeat do not rent to a council. i would rather it laid empty

Another who would caution against it, just because you don't know what you are getting.

There is a house that backs onto ours but slightly to the left that was council let. Belongs to an old lady in a care home with POA children who live miles away. The first tennants the council put in it were an absolute nightmare, anti social behaviour, 6 children aged 9 to 17 who refused to go to school and instead listened to music or gamed loudly all day. Used to host all their truanting mates and drink, smoke weed and used the house like a brothel (the sister age 16 was "entertaining" all her teenaged brothers mates in her bedroom one after the other), the youngest at 9 lived in his bedroom gaming loudly with headphones. Social services and education welfare were constantly round. The parents sold drugs from the house and also "sold" their daughter's sexual services. It took a good couple of years to evict them (the council did it as they were in breech of their council contract). They took all the white goods out the house, tore up the carpets, knocked all the plaster off the walls, ripped out the kitchen units apart from the sink, smashed up the bathroom apart from the sink, ripped up all the floor boards in the house. The morning the bailifs arrived they put the plugs in the sinks and switched the taps on. Serenely left the property so no-one went into check. They flooded the entire house causing £££ in water damage and a collapsed ceiling.

I'd advise put on open rent, screen the tennants and find someone who you are happy to rent long term too.