Private Sector Leasing

Families and individuals who find themselves homeless and need of immediate housing are assisted in finding temporary accommodation (whilst their claim for permanent housing is being processed) under the Private Sector Leasing Scheme. Local councils work in partnership with housing associations (who are usually Registered Social Landlords with their own management companies) who advertise for properties and private sector landlords who offer up their properties onto the Scheme.

THE PROCESS

When private landlords either respond to an advertisement or approach the council themselves, they are sent an application pack containing the following:

• Application form;
• RSL business document;
• Gas/electricity check form;
• Rent banding details;
• Property condition requirements;
• Sample lease;
• Letter of permission and verificaton form from the lender;
• Insurance and verification form.

A photograph of the property of not more than 12 months also has to be sent along with the application. The RSL will confirm with the council that the size and location of the property is and if it is, it is accepted on a provisional basis. The owner is advised and provided with the name and contact details of whoever they will be dealing with at each stage of the process, along with the leasing standards.

An appointment will then be made for the RSL (or an agent) to inspect the property. A provisional rent figure is given and the owner will be advised if any works are required to bring the property up to standard. If funding is required for such works, the RSL will advise him to approach his contact at the council to see if they have any grants/loans available and advises the council that they will be contacted by the owner. If the RSL's agree to carry out the works themselves it will be reflected by a lower rent being paid to offset the cost over a period of time.

Dates are then arranged for gas and electricity checks to be completed and a date will also be set for a second inspection to ensure the works have been complied with, a Schedule of Conditions is completed and photographs of the property are taken. The RSL will then advise the council of a rough date as to when the property will become available and asks for 3 nominations to be made.

The RSL also has to confirm that they have secured the following:

• Written evidence of ownership (freehold or length of lease) including title deeds if they are available;
• The mortgagees permission to sublet the property (if a mortgage is held);
• Up to date gas and electrical certificates;
• Buildings insurance with written evidence that insurers will cover the property if sublet;
• The permisson of the superior lessee to sublet  the property has been granted if there is a head lessee.

Lease With The Council

The owner then enters into a lease with the council and the council covenants with the owner that pursuant to s21 of the Housing Act 1985 throughout the term it will:

• 3.1 Only use the property as temporary residential accommodation so that Schedule 1 Paragraph 6 of the Housing Act 1985 shall apply - this means that 'a tenancy is not a secure tenancy if the dwelling house has been leased to the landlord with vacant possession for use as temporary housing accommodation'.
• 3.6 Use reasonable endeavours to ensure that the tenant does not cause nuisance or annoyance to the occupiers or owners of any adjoining property and take steps in accordance with it, procedures as shall be amended from time to time for dealing with complaints or nuisance.

A copy of the lease is sent to the owner along with gas, electrical and appliance check copies. The RSL also informs the following that the property checks are complete and the property is coming into management:

• Technical Service Team;
• Customer Service Team;
• Finance Team;
• Housing Management Team
• Revenues Team

Note: If a third inspection is required then the owner will be charged.

First Nomination And Sign-Up

The RSL now contacts the first nomination (tenant) and agrees to meet them at the property to view it. If they accept it then a sign up date is agreed where the Tenancy Agreement is gone through and the new subtenant is advised of their responsibilities. They will be given help in completing a Housing Benefit form and a rental account will be set up with the RSLs Finance Department. On moving in the following departments are advised of a family in temporary accommodation:

• The Council's Allocation Department;
• The Homeless Department;
• The Housing Benefit Department.

Offer Of Permanent Accommodation

If an offer of permanent accommodation is made then the tenant will be signed up on the usual Assured Shorthold Tenancy Agreement and the landlord moved from being paid a nightly rate (whilst the tenant is on a licence) with housing benefit and rent paid directly to the housing association and then to the landlord, 1 month in arrears. Even though the rent is likely to be up to 20% less than on the open market because the tenants are on either full or part housing benefit, it is guaranteed for the life of the lease (tenancy). It will also be reviewed on every anniversary date of the lease being granted and adjusted upward in accordance with any (upward) percentage change in the Retail Price Index.

Regular Inspections

The managing agent will regularly inspect the property, at least once every 2 months. During these visits they will make note of any repairs that need to be done, and ensure that the property is being well looked after by the tenant. The council are in turn required to monitor the performance of the managing agents and co-ordinate the handling of complaints from tenants and landlords.

The managing agents will also provide a maintenance telephone hotline so that tenants can ring at any time to report repairs. The tenant is responsible for meeting the cost of any damage they may cause (either accidentally or intentionally).

No Offer Of Permanent Accommodation

If an offer of permanent accommodation is not made to the current tenant and the landlord wishes to lease the property again, if the borough requires properties of that size and in that location, then a new lease with a new rent will be issued to the landlord. The landlord will then, as directed by the association:

• Redecorate,
• Refurnish and repair;
• Provide new gas and electrical safety certificates,
• Provide proof of ownership;
• Provide proof of insurance;
• Provide proof of a central heating service contract.

Returning The Property To The Landlord

If on the other hand the landlord wants the property back at the end of the lease rather than renewing it, the managing agent will undertake a full inspection to assess the condition of the property. They will return the property, in accordance with the lease, in the same condition that it was in at the start of the lease but will not include replacing the carpet or other floor coverings or furnishings provided.