Lease to Council

I can only comment regarding the HAP scheme - it is still the responsibility of the landlord to deal with the tenant's problems e.g. heating, plumbing problems etc., HAP pay the landlord on the last Wednesday of the month as long as the tenant has paid HAP their contribution. Rent is paid in arrears. HAP will inspect the property but their inspections are done several months after the lease has been signed - it should be done in advance to vet the property. If you get a good tenant it seems to work well.
 
I entered into a ten year lease with Limerick Council in July 2018, I've never met the person living in the property, the local authority deals with all tenant related issues, I'm responsible for structural repairs but say a kitchen appliance breaks down or even the gas boiler needs repair, that's the responsibility of the council

I receive 850 euro per month and in the eighteen months since the lease commenced, i have not had to spend a penny, i pay LPT and house insurance

I bought the two bedroom terraced town house for 72k so it's a good return on money, however, my house is not in a desirable area, it's on a quiet street but is very close to an area with a pretty awful reputation.

Add to that, it is my view that the councils use those long term lease schemes to get problem people off their plate for a decade, it's written in my lease that the property comes back in the condition i handed it over but i don't think I'd be happy to enter into such an arrangement with a much more expensive property
 
eisfspike said:
Hi All,

Just wondering if anyone has had any experience with the below? It seems attractive to anyone wanting to retain a property for the future but doesn't want the day to day hassle of dealing with tenants (albeit on a reduced rent basis). Any thoughts?

Information for property owners and landlords | The Housing Agency

www.housingagency.ie www.housingagency.ie
Click to expand...

Had apartment with SDCC on the RAS scheme for several years. 90% of going rent but had to deal with the calls for maintenance etc.

Last 3yrs (on ten year contract) long term rental scheme. 80% of going rent. Heaven no calls no nonsense.

In my humble opinion if letting to council go long term no hazzles and if like most landlords you are on the top rate of tax net income loss is minimal. Its a no brainer.
 
Thanks guys, its interesting as I thought there would be some sort of tax benefits to the landlord to pass your property over to the council thus increasing supply to the local authority. If the Government were to remove all tax on rental income for landlords who lease to the council surely this would make a dent in the housing crisis?

I really like the idea of renting to the council long term but I do spend money on the house to reduce my tax liability by going with a long term lease I am opening myself up to paying full tax on the rental income as I won't be investing any money in the house. I guess this is the trade off.
 
I guess it could be argued that landlords would flock to the council thus reducing the supply of property to the private sector resulting in further increased rents.
 
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