PRIVATE SECTOR LEASING

LEASING YOUR PROPERTY TO THE COUNCIL

Ø Leasing to the Council

Ø Setting up the Agreement

Ø Managing the Property

Ø Letting and Safety Standards

Social Services & Housing Directorate

Housing Services Section

7 High Street

Newport

Isle of Wight PO30 1SS

Tel: 01983 823040

Fax: 01983 823050

e-mail: [email protected]

LEASING TO THE COUNCIL

What is a Lease?

A lease is a legal agreement whereby you rent out your property to the Council for an agreed number of years (e.g. 3 or 5). The Council then sub-lets to people in need of housing but it is the Council that is responsible for paying you rent, which is a guaranteed income. You are responsible for managing the property yourself or you can appoint an agent to manage it on your behalf.

The lease comprises two separate agreements -

the first being the agreement to rent the property from you -

the second agreement concerns the management of the property.

The Council is not able to offer a property management service itself and this agreement includes all the property management matters which the Council will ask the landlord to do or make arrangements for.

What Type of property is suitable?

The Council is interested in anything from a studio flat to a three-bedroom (or larger) house.

The property must be offered with vacant possession and must not be subject to an existing tenancy or any proceedings that may result in legal possession.

The Council will not agree to enter into a lease with you if you ask an existing tenant to leave in order to make the property available for leasing under this scheme.

What will the property be used for?

The property will be used as temporary accommodation for homeless families and households whom the Council have to help until they can be found a permanent housing association home.

In some cases the Council may not have to find the families a permanent home. If this happens the Council will help them find somewhere else to live.

The Council is able to lease private properties for this use under Part 7 of the Housing Act 1996.

What Sort of Tenancy Agreement will be given by the Council

Even though the tenancy is between the Council and the family or household to whom the Council have let the property, it is not a secure Council tenancy. Because the tenancy has been given by the Council under Part 7 of the Housing Act 1996 as temporary accommodation the tenancy is a non-secure tenancy.

The Council is allowed to give a non-secure tenancy for homeless families in temporary accommodation under Schedule 1 of the Housing Act 1985. With this type of tenancy, if it has to be ended the Council does not need to prove any reasons or grounds but simply give a reasonable period of notice (normally 4 weeks).

What will the Council offer me?

ü Pay you an agreed rent in advance which is guaranteed whether or not the property is occupied

ü In some cases the Council may be able to assist with some of the works required to bring the property up to its letting and safety standards.

ü The rent may be slightly above the market rent and it is guaranteed. This is to recognize that you will have to arrange management of the property but if you do this yourself there are no agents fees to pay. The Council also recognises that there may be a higher turnover of occupants, therefore, possibly increasing maintenance costs which again are reflected in the level of rent.

ü Find occupants for the property and make sure, as far as possible, it is kept occupied.

So What Will I Have to Do?

You will still be responsible for the main structure (walls, roofs, external doors, windows etc) and service installations together with routine maintenance. You will also be responsible for the buildings insurance, and managing the property. The Council will enter into a separate management agreement with you or you can appoint someone as your agent to manage the property on your behalf.

The property must normally

ü Be in a good state of repair, fit for human habitation and safe (see headings Lettings Safety Standards and Fitness Standards)

ü Have floor coverings (carpets etc) and curtains, but otherwise be unfurnished (appliances other than built-in hobs and ovens will need to be removed)

A Housing Services Officer will visit your property to inspect it. We will then be able to tell you about any works needed to bring it up to the required standard.

SETTING UP THE AGREEMENT

Initial Enquiry

After you have contacted the Council to express an interest in the private sector leasing scheme (PSL) we will discuss the scheme with you and may also give you information about other schemes and opportunities that may be of interest to you.

As well as this we will provide a specimen lease so that you can see exactly what is involved in the legal agreement and can pass it on to your legal adviser if you so desire.

Initial Inspection of your Property

If you decide you want to explore the PSL scheme further, a Housing Services Officer will arrange to inspect your property and identify what, if anything, needs doing to bring the property up to our letting standard.

Agreeing Terms of the Lease

After the inspection we will discuss with you anything that needs doing, how it will be done and how it might be paid for. There are several different options; for instance the Council may be able to assist with the cost of carrying out some of the works.

Once we know how this is going to be sorted out we can finalize the rent and other terms and conditions of the lease. We will write you a letter confirming what has been agreed.

Gas and Electric Checks

For the safety of our tenants you will need to carry out a full check of the electric and gas installations. Sometimes these specialist tests will reveal the need for other work to be done which you will have to arrange to have carried out and completed before we can enter into the lease with you.

The Draft Lease

Once we are clear about the terms of the lease a draft will be sent to you containing all the terms and conditions agreed so you can check you are happy with it.

Other Checks

We will want to see:

ü Evidence that you have Buildings Insurance

ü A letter from your lender (if you have a mortgage) that gives you permission to lease the property to the Council.

Final Inspection

Before the lease is signed a Housing Services Officer will return to your property:

ü To check the property is ready for the Council to take on and use

ü To make a record of the condition of the property for future reference

Taking the Property into use

Everything should now be ready. We will arrange a time for you to come in and sign the lease (or this can be done by post). There will be two copies of the lease – one for you and one for us. We will sign our copies once we have received your signed copies. We will then send or give you one of the signed copies.

Disclaimer

Please note that you are advised to check the lease agreement carefully as the terms of the lease will take precedence over these guidance notes.

MANAGING THE PROPERTY

What does the Landlord Have to Do?

Under the Private Sector Lease agreement, the main responsibilities of the Landlord are to manage and maintain the property.

Repairs and Maintenance

ü Provide the property in the condition agreed prior to the lease being signed

ü Insure the building, provide evidence of insurance and claim against the insurance if required

ü Repair any damage caused by an insurance risk

ü Repair and maintain the property including any built-in services and outside features such as walls, fences and path

ü Service gas appliances at the end of every 12 months

ü Ensure mandatory safety checks on electrical appliances supplied by the landlord are carried out

Managing the Property

ü Make sure that repairs are carried out satisfactorily

ü Make sure that any gardens are kept tidy

ü Make sure the tenants abide by the terms of their tenancy agreement

ü Attempt to resolve any disputes with neighbours

ü Ensure adequate security of the property and give instructions to tenants on security matters

ü Give tenants instructions about the use of services and appliances supplied by the landlord

ü Issue and recover keys from tenants

ü Accompany viewing by new tenants and ‘’checking out” of outgoing tenants

ü Ensuring the property is clean and ready for re-letting to new tenants

ü Allow the occupants to live in the property without interference

Note that the Council does not accept any responsibility for the condition of decorations in the property. Similarly with carpets and curtains over the period of the lease.

You are expected to supply the property with carpets and curtains and to maintain or replace these during the period of the lease. You are also responsible for any interior redecorating over the course of the lease.

LETTING AND SAFETY STANDARDS

Introduction

We need to ensure that properties we take on meet the necessary standards. Our main concern is that the property is safe, in good repair and has basic amenities. You can use this section as a checklist to work out what might need to be done to bring your property up to this standard. This is the standard we will use when we inspect your property.

Minimum Habitable Standards

Any property let to the Council must be “fit for human habitation”. A dwelling is fit if:

ü It is structurally stable and free from serious disrepair

ü It is free from dampness prejudicial to the health of the occupants (if any)

ü It has adequate provision for lighting, heating and ventilation and has an adequate piped supply of wholesome water

ü There are satisfactory facilities in the dwelling-house for the preparation and cooking of food, including a sink with a satisfactory supply of hot and cold water

ü It has a suitably located WC for the exclusive use of occupants

ü It has, for the exclusive use of occupants a suitably located fixed bath or shower and wash-hand basin each of which is provided with a satisfactory supply of hot and cold water and

ü It has an effective system for draining foul, waste and surface water

(For flats there are requirements, similar to the above, for the “common” parts of the building outside the flat such as stairways, halls etc).

Interpretations

Amenities

ü There should be a separate bath or shower-room with a wash-hand basin and any WC should either be in this room or in another separate room. All should be accessible without leaving the building i.e. an outside toilet is not acceptable

ü The kitchen area should include a sink with draining board, adequate and hygienic work surfaces (normally at least 2m in length), adequate storage space (minimum capacity 0.4m³) including space for a refrigerator. If there is no built-in cooker then space for a freestanding cooker with appropriate power/gas connections and at least three appropriately positioned double sockets (or equivalent) in addition to the cooker outlet.

ü All bathroom facilities, including the kitchen sink, should be provided with an adequate supply of hot and cold water and connected to an effective drainage system.

Services

ü Gas and electric installations are described in more detail below

ü Replacement of pipe-work is required where lead levels are in excess of EU standards.

Insulation, Ventilation and Windows

ü All main rooms must have glazed windows equivalent to one tenth of the floor area of the room and have adequate electric lighting.

ü All main rooms must have windows providing opening spaces equivalent to one twentieth of the floor area of the room…

ü …and the windows which are supposed to open need to work!

ü Bathrooms, toilets and kitchens without windows require adequate mechanical extraction (i.e. fans)

Heating

There needs to be a fixed heating appliance or radiator in every room. Portable gas or electric heaters are not acceptable. If the heating appliance is an electric fire it can only be a wall-mounted convector heater and it must be connected to a fused spur not just plugged in.

The heating must be capable of keeping the rooms to at least 18°C when the outside temperature is -1°C.

Ideally, properties would have gas-fired central heating. If not, we would normally want to see a combination of double-glazing and gas-fires or night-storage heating. The only exception might be a very small property such as a studio flat.

Gas and Electric Installations

Electric Installation

The electrical system will need to be safe, although it does not have to comply with the latest IEEE regulations. Amongst other things there must be:

ü No damage to electrical fittings (plugs, light switches etc)

ü Proper sheathed cable to light pendants (not twisted-pair flexes)

ü Adequate earth-bonding of pipe-work etc

ü Enclosed light fittings in bathrooms (unless distant from baths/showers)

ü A minimum of 3 double sockets or equivalent in the kitchen

ü A minimum of one socket in each bedroom

ü A minimum of two double sockets in the main living room

ü Switchgear to the consumer units which are at least 1.5M (5’) above floor level or boxed in securely

ü Ring mains which are protected by RCD devices

Gas Installation

ü The installation and any appliances must pass the CORGI Gas Safety check

ü It is also important that any system or appliances are working satisfactory

Safety Issues

A large number of accidents happen at home. The most common ones are slips, trips and falls. But fire and electrical faults can cause death or serious injury. We try and avoid all of these by making sure that properties meet the standards described below. Most properties will be occupied by children so we do pay particular attention to aspects such as ponds, low level glass etc which might not be a problem for adults.

Fire Safety

Smoke Detectors

There should be at least one smoke detector provided on each floor of a dwelling.

Fire Blankets

Fire blankets conforming to BS6575 1985 must be properly sited in each kitchen.

Polystyrene Ceiling Tiles

These tiles are not acceptable because of the possible fire risk. They would need to be removed from all rooms

Other Safety Hazards

Hazardous Substances and Equipment

All parts of the premises including outbuildings must be cleared of any hazardous substances including paints and cleaning agents.

In addition, equipment including DIY tools should be removed.

Floor Coverings

These should be free from trip hazards i.e. well secured and free from rips and tears. Kitchen and bathroom flooring must be non-slip, water resistant and washable i.e. vinyl, tiles, lino etc.

Safety Glazing

Low level glazing should be safe and comply with BS6206. This states that glazing to doors and adjacent panels should be safety glass to a level not less than 1.5M above floor level. Other areas of glazing below 85cm to floor level, for example conservatories, should also be safety glazed.

These standards may be achieved by

ü Replacing non-complying glass with safety glass

ü Upgrading it by applying a safety film

ü Removing the glass and replacing with 6mm ply/MDF, which must be secured and decorated.

Windows

Windows that can be opened on first floor level and above with sill heights below 85cm (3’) should be restricted to an opening no less than 10cm (4”) and should have child-proof locks and a safety rail.

Stairs

A secure handrail must always be provided to stairs at a height of no less than 80cm above the stair nosings. The gap between balusters or horizontal railing should be no greater than 10cm (4”). Stairs should always be well it.

External Boundaries

Walls and fences to external areas of the property must be continuous, secure and safe.

Yards and Gardens

External areas within the property boundary such as gardens and yards must be clear of rubbish or any other debris.

Garden ponds must be emptied and filled in to make them safe.

Greenhouses must be dismantled and removed.

Paths and steps must not be uneven and must be free of slime.