"Check your head, then check your rent!" - Navigating the social housing maze

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, twisty, nuanced space where each contract comes with its own flavour, just like your favourite cup of coffee (except sometimes 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. 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!)

1. Check your head before you check your rent  

• Mistake: Landlords having 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 rent, but equally, it’s not going to be 2 x Local Housing Allowance (LHA) 

​​​​​​​Solution: 

• Understand the service being offered by the Provider.  

• Ask the provider what sort of rental price they could expect before making a determination. 

• Understand if your property will be used as a Family Dwelling or a House of Multiple Occupation.  

• Review the offer in the round, what might you save on Property Management, or repair costs. 

2. Overlooking the Lease Terms 

• Mistake: Signing leases without fully understanding terms like repair responsibilities, break clauses, or payment schedules. 

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.  

3. Assuming all costs are covered 

• Mistake: Believing the provider will handle all expenses, only to find unexpected costs such as insurance, compliance upgrades, or communal area maintenance. 

Solution: 

• Clarify who is responsible for which expenses. 

• Ensure the lease explicitly states the financial obligations of both parties. 

4. Neglecting Property Maintenance Checks 

• Mistake: Assuming the provider will maintain the property to a high standard without regular oversight. 

Solution: 

• Schedule periodic inspections to ensure the property remains in good condition. 

• Include provisions in the lease for tenant-related damage and repair timelines. 

5. Ignoring planning or licensing requirements 

• Mistake: Renting out properties without ensuring they meet local planning or licensing requirements, such as for HMOs (Houses in Multiple Occupation). Social Housing Providers are almost always bound by the same rules as Private Sector Landlords.  

Solution: 

• Verify with the local authority whether any specific permissions or licenses are required. 

• Ensure compliance with regulations to avoid fines or legal issues.