Having worked with thousands of landlords, we’ve seen it all—every assumption, every expectation, and yes, every facepalm moment. The Social Housing Sector isn’t a one-size-fits-all kind of deal. It’s a quirky, twisted, nuanced space where each contract comes with its own flavour, just like your favourite cup of coffee (except with more paperwork).
Here’s the thing: The magic in this sector is driven by people. That means each agreement reflects the unique needs of those being supported, from tailored services to bespoke care. The bonus? Properties adapted to these needs often bring in higher rents.
So, how do you ace this? You’ve got to understand:
- The different services providers offer
- The unique groups (aka cohorts) they support
- How much support they provide (Hint: It varies!)
Ready to dodge the potholes and keep your property thriving in the Social Space? Here are the Top 5 Mistakes landlords make (and how to sidestep them like a pro)
Mistake #1 - Check your Head before you Check your Rent
The simple truth is that almost all landlords have unrealistic rental expectations for their property. Social Housing isn’t a get-rich-quick scheme – nor should it be. Rents should be sustainable. That doesn’t have to mean below market value, but equally, it’s not going to be 2x the Local Housing Allowance (LHA)
The Solution
- Understand the service offered by the provider.
- Before you make a determination, ask the provider what sort of rental price they could expect.
- Understand if tenants will use your property as a Family Dwelling or a House of Multiple Occupation.
- Review the offer in the round and determine how you can save on Property Management or repair costs.
Mistake #2 - Overlooking the Lease Terms
Signing leases without fully understanding terms like repair responsibilities, break clauses, or payment schedules is a common mistake with first-time and experienced landlords.
The Solution
- Review the lease carefully, especially the repairing and insuring obligations.
- Seek clarification from an expert of the provider on the lease if you don’t understand it.
Mistake #3 - Assuming All Costs Are Covered
Believing the provider will handle all expenses, only to find unexpected costs such as insurance, compliance upgrades, or communal area maintenance.
The Solution
Clarify who is responsible for which expenses.
Ensure the lease explicitly states the financial obligations of both parties.
Mistake #5 - Neglecting Property Maintenance Checks
Assuming the provider will maintain the property to a high standard without regular oversight.
The Solution
Schedule periodic inspections to ensure the property remains in good condition.
Include provisions in the lease for tenant-related damage and repair timelines.
Mistake #6 - Ignoring Planning or Licensing Requirements
Renting out properties, such as HMOs (Houses in Multiple Occupations), without ensuring they meet local planning or licensing requirements. Remember, Social Housing Providers are almost always bound by the same rules as Private Sector Landlords.
The Solution
Verify with the local authority whether any specific permissions or licenses are required.
Ensure compliance with regulations to avoid fines or legal issues.