Local authority tenants or private tenants, which route should I take?

[PostBrexitInvestor]

I know there are many buy to let investors who have no problem finding tenants from the private sector. However, there are many who look towards local authorities to provide tenants even though housing benefit may not match the market rate at the time. Does it make sense to go with the more secure local authority tenants, with a lower rental income, or look for private tenants at the market rate?

 

[ThatPropertyBlogger]

Personally, I would NEVER touch tenants on HB as the risks of having rent clawed back are too great. In addition, when you serve notice, local councils generally advise tenants to stay until the bailiffs arrive. Yes, you read that last sentence correctly!

 

[Longterminvestor]

Wow! If local councils really are advising tenants to stay put until the bailiffs arrive that there is bordering on criminal surely?

 

[Veronica]

Unfortunately this advice results in many tenants suddenly being confronted with high court enforcers who have the authority to evict immediately. Often because the councils have given bad advice the tenants havn't even begun to pack their belongings because they believe they have time.This means families having to get out with just the few possessions they can carry having to appeal to the local authorities to find them somewhere to stay. A very unsatisfactory state of affairs.

 

[realdeals]

This may sound harsh but if you cant afford to pay the rent for a private let then the next step must surely be the council housing list? Is this the real reason councils are giving out this crazy advice?

 

[Veronica]

The problem is that there are just not the number of council/housing association properties to cater for needs. Evicted tenants often end up in hostels, one room to a family.