How does working with a supported housing provider benefit me?
For landlords seeking stability, working with a supported housing provider can offer numerous benefits beyond the typical rental arrangement. With guaranteed rent, reduced management responsibilities, and added security, this option can turn property letting into a hassle-free and rewarding experience. Here’s a breakdown of the key advantages of renting your property to a supported housing provider:
1. 3-7 years of guaranteed rent
One of the biggest concerns for landlords is the uncertainty of rental income, especially in unpredictable markets. Supported housing providers typically offer long-term leases, ranging from 3 to 7 years, with guaranteed rent. This means that you can count on a steady, reliable income over the entire lease period, regardless of tenant turnover or vacancy.
2. No management costs
When you lease your property to a supported housing provider, they take on the responsibility of tenant management. You won’t need to worry about handling day-to-day tenant issues or organising inspections. This eliminates the need for costly property management services, saving you both time and money.
3. No utility bills to manage
In supported housing arrangements, the provider usually takes care of the utilities. This means you won’t have to manage or monitor utility payments, further simplifying the letting process.
4. No void periods
Void periods can be a major financial drain on landlords, but working with a supported housing provider eliminates this risk. Providers aim to maintain full occupancy, and with guaranteed rent built into the contract, you’re protected from any income loss due to vacant periods.
5. Tenant damage covered
Another significant advantage is that the provider typically covers any tenant damage. You won’t have to worry about unexpected repair bills caused by wear and tear or accidental damage. The provider takes responsibility for the property’s condition, ensuring it remains well-maintained.
6. Government-backed income and novation
Most supported housing providers receive government-backed funding, adding an extra layer of financial security. Even if your current provider can no longer manage the property, novation clauses can transfer the lease to another provider, ensuring that your income remains uninterrupted.
7. Day-to-day repairs covered
While supported housing providers don’t offer a fully repairing and insuring lease, they do cover most day-to-day repairs. You’ll have fewer maintenance responsibilities, and the provider will ensure that small issues are resolved promptly, maintaining the property’s value.
8. Strong financial covenant
Supported housing providers typically have net assets on their balance sheet, offering a strong financial covenant. This stability makes them far more reliable than individual tenants, providing you with confidence that they can meet their financial obligations.
9. Regular property visits
When the support worker visits tenants on a weekly basis, they also check the property’s condition. This means your property receives consistent oversight, reducing the likelihood of unnoticed issues and keeping the home in good shape.
10. No rent arrears of evictions
Because supported housing providers pay the rent directly, the risk of rent arrears or having to go through lengthy eviction processes is eliminated. This removes a common headache for landlords and ensures a smoother, stress-free experience.
11. No lettings or tenant finding fees
Working with a supported housing provider means you can avoid the costs and hassle of tenant-finding services. There’s no need to advertise, conduct viewings, or pay lettings fees, which makes the process more cost-effective.
Key takeaway
Partnering with a supported housing provider offers long-term financial stability, reduced risk, and minimal management, allowing you to enjoy the benefits of property ownership without the typical challenges. With guaranteed rent, fewer costs, and greater security, supported housing could be an excellent option for landlords looking for peace of mind and steady returns.
