Nottingham City Homes offers property owners in Nottingham a guaranteed monthly rental return under its Private Sector Leasing Scheme.
Property owners are provided with a guaranteed monthly rental return in advance, at a rate to be agreed. Rental return rates are slightly lower than market rent, to take account of the guaranteed income, repairs offer and lack of fees that property owners benefit from under the scheme.
Annual rent increases are set at the prevailing Consumer Price Index rate.
The leasing offer
Nottingham City Homes Registered Provider (NCHRP) will lease properties – ideally family-type self-contained accommodation within the city boundary with at least two bedrooms - for an agreed period of between one and five years. The lease will provide a break clause at the end of year one.
Fully manage the property, placing residents on a temporary basis and visiting every two weeks at least.
- Cover any void periods, bad debt and Selective Licencing fees.
- Provide up to £500 of responsive repairs and gas servicing each year, free of charge.
- Furnish the property (existing furniture will be considered if available).
- Indemnify the property owner against damage, returning the property in the same condition as at the start of the lease, subject to fair wear and tear.
A lower monthly rental return will reflect the cost of works done by NCHRP, to be paid back over the term of the lease.
Property owner and property requirements:
- The property to be leased must meet the property standards set for Selective Licencing in Nottingham.
- Any works required to meet the standards must be done by the property owner. However, NCHRP may consider leasing properties that require some works to bring empty homes up to the required standard.
- Properties that require extensive refurbishment will not be considered.
- Property owners must provide proof that they have the legal right to enter into a leasing agreement for the property.
- If the property is subject to a mortgage, property owners will need to provide written proof that their provider will allow a leasing arrangement.
- Property owners will be responsible for repairs that exceed the £500 per annum allowance and for planned maintenance. NCHRP can quote for any works required at the property owner's cost.
- Property owners must have adequate building and public liability insurances in place, specifying that the property is leased.
All properties being leased must comply with the Nottingham Standard for properties as required by Selective Licencing, although owners of currently empty properties will not require a licence if the property is leased to NCHRP. The Nottingham standard requires the following:
- A valid Electrical Safety Certificate
- A valid Gas Safety Certificate
- An Asbestos Survey Certificate
- A Damp Survey Certificate
- A current EPC showing the property is assessed at E or above
- Proof that a Housing Health and Safety Risk Survey (HHSRS) has been done and no hazards are present.
NCHRP can do any of the above surveys / certifications for property owners, subject to payment of the appropriate fees in advance. NCHRP may offer a legal option to lease in advance of property owners committing funds to obtain the necessary certification, so long as the property ultimately meets the required standards.
For further information or to apply to the scheme, please email us.