# 3yr contract with RAS Scheme: can they pull out as they have no tenant?



## lopin10 (10 Oct 2010)

Hi

I have given my house to the RAS scheme at the end of July and to date it has not been rented appart from a tenant that spending 3 nights in the property (they did not want to stay in the property). I signed a 3 year contract with RAS and I was wondering if they could pull out of the lease as they dont have a tenant for the property.

Many thanks


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## Knuttell (10 Oct 2010)

Was the property rented to them empty at the time?


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## lopin10 (10 Oct 2010)

The property was empty at the time RAS put there tenants into it and it is now empty again.


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## Trustmeh (10 Oct 2010)

Yes they can pull out of the contract. I would guess that they are not aware that the tenant is no longer living there if they are still paying you, or they just havent got around to figuring it out.

If the tenant moves in somewhere where they get rent paid, then they _should_ catch the double payment and stop paying you.


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## j26 (10 Oct 2010)

No, as far as I know, the RAS scheme is where the Council rents the property from you and then they are free to put in who they like, or nobody as the case may be.


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## Knuttell (10 Oct 2010)

Try

http://www.irishlandlord.com/forum/


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## Trustmeh (10 Oct 2010)

j26 said:


> No, as far as I know, the RAS scheme is where the Council rents the property from you and then they are free to put in who they like, or nobody as the case may be.


 
And they are also free to stop paying you rent when the tenant moves out. been there done that wore the tshirt. Offer advice on what you know not what you AFAIK.


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## j26 (11 Oct 2010)

Trustmeh said:


> And they are also free to stop paying you rent when the tenant moves out. been there done that wore the tshirt. Offer advice on what you know not what you AFAIK.



Funnily enough, I was in discussions a couple of years back with a Council about such a scheme, where I'd be paid rent, and the Council could put in who they like, but I'd be paid regardless of whether there was someone in the property. This was a 4 year scheme. On the other hand, I do know someone in a RAS scheme which is tied to a particular tenant, but that's a 12 month contract. So I speak from some knowledge.


To me, the OP sounds like he's on the first kind of scheme.


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## Brendan Burgess (11 Oct 2010)

From the Department of the Environment's Guide for Landlords it appears to depend on what you have agreed with the Local Authority.



> A number of forms of contractual arrangements between
> landlords/developers, local authorities and tenants may
> exist under the RAS. In the main these will fall broadly
> into three types of arrangement.
> ...


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## Trustmeh (11 Oct 2010)

j26 said:


> Funnily enough, I was in discussions a couple of years back with a Council about such a scheme, where I'd be paid rent, and the Council could put in who they like, but I'd be paid regardless of whether there was someone in the property. This was a 4 year scheme. On the other hand, I do know someone in a RAS scheme which is tied to a particular tenant, but that's a 12 month contract. So I speak from some knowledge.
> 
> 
> To me, the OP sounds like he's on the first kind of scheme.


 
I appreciate that you were in a discussion in the past - and maybe that warrants some experience. But in my experience I signed a 5 year agreement with a County Council for RAS. When the tenant moved out after 4 years, the Council stopped paying the rent. I contacted them to find out if they were going to replace the tenant as my understanding was that they would countinue to pay me rent wether it was empty or not, for 5 years.
He laughed at me and said no. He said IF he had a suitable tenant that fit my property he would indeed use me again, but I didnt wait for that to happen (and he never did contact me) and filled it myself.

I think the OP is in a situation where the local authority is not keeping an eye on their tenancies. If they discover its unrented they will cease payments - im not sure if they will look for monies owed for property being empty or not. However, I personally would not look to take the chance, or cheat the state, and would fill the tenancy on my own.

Aplogies for my early abrasive comment is it offended you j26.


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## rosemartin (11 Oct 2010)

i contacted my local council about my house which is vacant,   they told me that would only get on scheme if i had tenants who were on benifits.  didn't think that was right but this is the policy they are using


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## saintstephen (17 Oct 2010)

I have 1 property rented under a 4 year lease on the RAS scheme.
It was stated that the rent would be paid regardless of the present tenant moving or not..... its a 4 yr contract after all.


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## TrueBlue (28 Oct 2010)

lopin10 said:


> Hi
> 
> I have given my house to the RAS scheme at the end of July and to date it has not been rented appart from a tenant that spending 3 nights in the property (they did not want to stay in the property). I signed a 3 year contract with RAS and I was wondering if they could pull out of the lease as they dont have a tenant for the property.
> 
> Many thanks



This raises a very concerning sidenote. The owner is still responsible for buildings insurance. Insurance companies expect the properties to be occupied. And to be notified if not. Some will void the policy if it is long-term unoccupied.


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## jambo.ie (29 Oct 2010)

It is very worrying in the current and recent climate that people are not a) reading their contracts and b) understanding them before they sign them.


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## murphaph (29 Oct 2010)

TrueBlue said:


> This raises a very concerning sidenote. The owner is still responsible for buildings insurance. Insurance companies expect the properties to be occupied. And to be notified if not. Some will void the policy if it is long-term unoccupied.


Interesting point. I have a family in receipt of RS in my place. The council wrote to them (as I believe they are on the housing list) and told them the council would be building very few if any new houses in the coming years and that their best chance of stable accomodation would be to enter the RAS scheme. The letter further went on to ask my tenants if their landlord might be interested and to get me to complete my name and contact details if so.

I would not be opposed in principle to entering the RAS. I understand the pros and cons but the above point spooks me. It is unlikely but still possible that my tenant family would move on or be moved out by the council, BUT it is still a possibility and insurers HATE vacant premises. 

We had huge trouble insuring a vacant property (waiting to be converted into retail hopefully, would cost a lot to get it habitable) in the past couple of years. One insurer walked away. In the end it was FBD who covered it as they are ok covering uninhabited buildings due to the high number of such in the agricultural world.


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